If a Nation Changes Its Laws to More Actively Enforce

question 171

Multiple Choice

If a nation changes its laws to more actively enforce intellectual property rights, all of the following will most likely take place except

• A)more software companies will choose to export their products to that country.
• B)more film makers will choose to do business in that country.
• C)the black market for intellectual property will become more prosperous in that country.
• D)foreign investment in that country will increase.

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Definitions:

Average Costs

The total costs of production (fixed and variable) divided by the total quantity of output produced.

Central Planning Model

A system of economy where all choices regarding the creation and use of goods and services are made by the government.

American Capitalism

A system marked by private property, competitive markets, economic incentives, and limited government intervention in the economy.

Product Differentiation

The technique of identifying a product or service as unique in the market to boost its desirability to a chosen target demographic.