To Encourage Firms to Engage in Research and Development (R&D)

question 47

Multiple Choice

To encourage firms to engage in research and development (R&D) , governments grant temporary monopolies in the production of the word or symbol based goods like books and computer code that result from R&D called:

• A)cartels.
• B)copyrights.
• C)anti-trust exemptions.
• D)all of the above.

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Definitions:

Exercise Option

An option in derivatives trading that allows the holder to buy or sell an asset at a predetermined price before or on a specific date.

Convertible

A type of financial security that can be changed into a different form, most commonly a bond that can be converted into shares of the issuing company.

Promised Yield

The return an investor is told to expect from a bond or other fixed-income security, assuming it is held to maturity and all payments are made as scheduled.

Bond A

A financial security that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays interest at predetermined intervals.