Governments Can Play a Role in Supporting the Production of New

question 62

Multiple Choice

Governments can play a role in supporting the production of new ideas by

• A) taxing industries that become too competitive.
• B) erecting protective trade barriers for the computer and telecommunication industries.
• C) directing the exchange of all scientific ideas.
• D) protecting intellectual property.

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Definitions:

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product are produced.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two or more goods and services that can be produced with available resources and technology.

Opportunity Costs

The cost of choosing one option over another, represented by the value of the opportunities or benefits the second-best choice would have provided.

Aggregate Demand

The total demand for goods and services within a particular market or economy at a given overall price level and in a given time period.