As it relates to R&D, a firm's expected-rate-of-return-curve, r:
A. slopes downward because the firm arrays, highest to lowest, the rates of return on R&D
activities.
B. slopes upward because of the law of diminishing returns.
C. is a horizontal line.
D. depends on whether it borrows from the bank or used retained earnings in financing R&D.
Answer: A
Economics
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In countries that have experienced hyperinflation, what role have large government budget deficits played in causing the very high inflation rates?
What will be an ideal response?
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To an economist, a free rider is a person who
A) uses private goods without paying for them. B) benefits from consuming public goods without paying for them. C) consumes demerit goods. D) uses the public transportation system without paying for it.
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