Patents Have Been Defended by Some on the Grounds That

question 15

Multiple Choice

Patents have been defended by some on the grounds that they stimulate inventive activity.Others have argued for changes in current patent laws because:

• A) resources are misallocated by the grant of a patent monopoly
• B) patents may not be necessary to encourage inventive activity
• C) the current patent monopoly period (17 years)is too short to encourage any inventive activity.
• D) a and b only
• E) all of the above

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan that considers compounding over a specified period, usually yearly.

Nominal Rate

The interest rate unadjusted for inflation, expressing the literal annual cost of credit or return on investment.

Nominal Rate

The reported percentage rate without taking inflation into account, representing the actual yearly cost of funds to the borrower.

Effective Rate

The interest rate on a loan or financial product restated from the nominal rate as an annual rate, which may differ once compounding interest is taken into account.