According to the text, there are three ways the government can help increase the accumulation of knowledge capital. What are they?
A) encouraging the use of trade secrets, expanding student loan programs, and increasing the minimum wage
B) reducing taxes on capital, increasing Social Security payments, and lowering the exchange rate
C) increasing taxes on firms, eliminating patents, and increasing the minimum wage
D) protecting intellectual property rights, subsidizing research and development, and subsidizing education
D
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A farmer who sells September corn futures at the time he plants his corn in May is
A) competing against speculators, who profit from price fluctuations. B) increasing his risk from price fluctuations. C) reducing his risk from price fluctuations. D) reducing or increasing his risk from price fluctuations, depending on what subsequently happens to the price of corn.
In the above figure, a price of $35 per dozen would result in
A) a shortage. B) equilibrium. C) a surplus. D) upward pressure on prices.