According to the Text, There Are Three Ways the Government

question 185

Multiple Choice

According to the text, there are three ways the government can help increase the accumulation of knowledge capital.What are they?

• A)protecting intellectual property rights, subsidizing research and development, and subsidizing education
• B)increasing taxes on firms, eliminating patents, and increasing the minimum wage
• C)encouraging the use of trade secrets, expanding student loan programs, and increasing the minimum wage
• D)reducing taxes on capital, increasing Social Security payments, and lowering the exchange rate
• E)reducing taxes on interest payments; enforcing contracts; and privatizing education

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Definitions:

Profit

The income earned when the total revenue from business activities surpasses all related expenses, costs, and taxes.

Clearinghouse

A financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.

Exercise

In finance, it refers to the act of executing one's right to buy or sell the underlying asset in options trading.

Futures Contract

A standardized agreement to buy or sell a specific asset at a predetermined price at a specified time in the future.