Author Question: Would companies and individuals invest as much in significant research and development if a system ... (Read 90 times)

littleanan · **on:** Jun 30, 2018

Would companies and individuals invest as much in significant research and development if a system of patents were not available?
a. Yes they would, because they could still hope to monopolize the market.
b. Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living.
c. No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts.
d. No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.

Question 2

Which of the following would not cause any kind of an outward shift of a nation's production possibilities curve PPC?
a. An improvement in the general level of education
b. Technological innovation
c. Discovery of a new source of energy
d. An increase in the size of the labor force
e. A flood that renders thousands of acres of farmland unusable