Knowledge capital is ________ in production and ________. As a ...

[Shelles]

Knowledge capital is ________ in production and ________. As a result, firms ________ free ride.
 
  A) nonrival; nonexcludable; cannot B) nonrival; excludable; can
  C) nonrival; nonexcludable; can D) rival; nonexcludable; cannot

Question 2

Refer to Figure 17-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point C in the long run?
 
  A) Increase the money supply.
  B) Buy treasury bills.
  C) Lower the discount rate.
  D) Sell treasury bills.
  E) No policy will move the economy to point C in the long run.

[Jody Vaughn]

Answer to Question 1

C

Answer to Question 2

E