Because in many industries the cost of generating new

This preview shows page 3 - 5 out of 11 pages.

Chapter 6--MacroTB

17 .   If there are large fixed costs , due to research and development , perfect competition does not generate new ideas , because
a. firms need to recoup these costs through higher profits .
b. with monopolistic competition , prices are equal to the marginal cost plus a markup .
c. with monopolistic competition , prices are equal to the marginal cost minus a markup .
d . perfectly competitive firms always set prices lower than the marginal cost .
e . Both a and b are correct .
21 .   With monopolistic pricing , __________ are needed to generate __________.
Get answer to your question and much more
22 .   The reason perfect competition can not generate new ideas is that
Get answer to your question and much more
18 .   Because , in many industries , the cost of generating new ideas is so high , firms must
Get answer to your question and much more
23 .   Which of the following can be used to give firms incentive to innovate ?
a. patents
b. copyrights
c. trade secrets
d . higher taxes
e. a , b , and c.
19 .   In perfect competition , the price __________ ; and in a monopoly , the price __________.
Get answer to your question and much more
24 .   Which of the following can be used to give firms incentive to innovate ?
Get answer to your question and much more
20 .   The markup is defined as
Get answer to your question and much more
25 .   The president of Tunisia asks you to suggest an idea to improve the economy ’s growth without worrying about decreasing returns . You suggest
a. paying a competitive wage .
b. offering firms an incentive to produce new ideas .
c. placing a higher tax on firms .
d. removing legal protection for firms .
e. None of the above .
30 .   In the Romer model , the more labor you dedicate to generating ideas __________ but _ _ _ _ ______.
Get answer to your question and much more
26 .   In the Romer model , two key goods are produced :
Get answer to your question and much more
27 .   In the Romer model , the inputs to production are
Get answer to your question and much more
31 .   The production function in the Romer model is given by ___ _______, where g ¯ is __________.
a . y t = A t k t 1 / 3 ; the growth rate of capital
b . y t = A ± 0 ( 1 + g ¯ ) t ; the growth rate of knowledge
c. y t = A ± 0 ( 1 – l ± ) ; the growth rate of population
d . y t = A ± 0 ( 1 – l ± ) ( 1 + g ¯ ) t ; the growth rate of knowledge
e . y t = A ± ( 1 – l ± ) t ; the growth rate of population
28 .   In the Romer model , the production function Y t = A t L yt , where A t is knowledge and L yt is the amount of labor in the output sector ,
Get answer to your question and much more
32 .   In the Romer model , output is increasing in _ _________ and decreasing in ___ _______.
Get answer to your question and much more
29 .   In the knowledge production function D A t = u ¯ A t L at , u ¯ represents
Get answer to your question and much more
33 .   In the Romer model , if an economy allocates all of its labor to production ,
a. it will reduce output .
b. it will reduce the number of ideas it generates .
c. it will increase the number of ideas it generates .
d. it will not generate any ideas .
e. None of the above is correct .
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 12 / Exercise 12
Exploring Microeconomics
Sexton
Expert Verified
18. Because, in many industries, the cost of generating new ideas is so high, firms must a. charge a price equal to the marginal cost. b. charge a price higher than the marginal cost. c. charge a price lower than the marginal cost. d. charge a price equal to the average fixed cost. e. charge a price lower than the average fixed cost. b. copyrights c. trade secrets d. higher taxes e. a, b, and c. Section: 6.2 19. In perfect competition, the price __________; and in a monopoly, the price __________. Section: 6.2 20. The markup is defined as a. the percentage of the price above the marginal cost that is used to recoup the costs of generating ideas. b. the percentage of the price below the marginal cost that is used to recoup the costs of generating ideas. c. the percentage of the price above the average cost that is used to recoup variable costs. d. the percentage of the cost above the marginal cost that is used to recoup the revenues of generating ideas. e. the percentage of the price below the marginal cost that is used to recoup the profits of generating ideas. Answer: a. Section: 6.2 21. With monopolistic pricing, __________ are needed to generate __________. Section: 6.2 22. The reason perfect competition cannot generate new ideas is that Section: 6.2 23. Which of the following can be used to give firms incentive to innovate? a. patents b. copyrights c. trade secrets d. higher taxes e. a, b, and c. Section: 6.2 24. Which of the following can be used to give firms incentive to innovate? Answer: e. Section: 6.2 25. The president of Tunisia asks you to suggest an idea to improve the economy’s growth without worrying about decreasing returns. You suggest Section: 6.2
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 12 / Exercise 12
Exploring Microeconomics
Sexton
Expert Verified
Growth and Ideas | 55

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture