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NEW QUESTION # 14
What are examples of intellectual property? (Choose TWO.)
Answer: A,C
Explanation:
In Global Economics for Managers , intellectual property (IP) refers to legally protected creations of the mind. Patents and trademarks are two major forms of IP, making options A and B correct.
Patents protect new inventions, processes, or technologies, granting exclusive rights to inventors for a limited time. Trademarks protect brand identifiers such as names and logos.
Subsidies and tariffs are government policies, not intellectual property protections.
Therefore, options A and B correctly identify examples of intellectual property.
NEW QUESTION # 15
Which statement is true for a monopoly firm, but not for a competitive firm?
Answer: B
Explanation:
In Global Economics for Managers , a key distinction between monopolies and perfectly competitive firms is the relationship between price and marginal revenue . For a monopoly, marginal revenue is less than price
, making option C correct.
A monopoly faces a downward-sloping demand curve , meaning that to sell an additional unit, the firm must lower the price not only for the marginal unit but also for all previous units sold. As a result, marginal revenue declines faster than price and always lies below the demand curve.
In contrast, a perfectly competitive firm is a price taker . It can sell as much output as it wants at the market price, so marginal revenue equals price.
Options A and B describe competitive firms, not monopolies. Option D is incorrect because monopolies can earn economic profits in the long run due to entry barriers.
Thus, option C correctly identifies a feature unique to monopoly firms.
NEW QUESTION # 16
What is a feature of a democracy?
Answer: D
Explanation:
A democracy gives citizens the right to elect representatives who govern on their behalf. Option D is correct because political participation, representative government, accountability, and civil liberties are core features of democratic systems. Democracies generally have institutional checks and balances, rule of law, and mechanisms for peaceful leadership change. These features can reduce arbitrary government action and improve transparency for businesses. Option B describes totalitarianism, where one person or party holds absolute political control. Option C describes a political risk that may occur in some countries but is not a defining feature of democracy. Option A is also incorrect because democracies usually reduce extreme political uncertainty compared with authoritarian systems, although policy changes can still affect firms. The defining feature is citizen representation through elections.
NEW QUESTION # 17
Which term best describes an economic condition in which a nation exports more than it imports?
Answer: D
Explanation:
A trade surplus occurs when a country exports more goods and services than it imports during a given period.
This means foreign buyers purchase more from the country than the country purchases from abroad. Option A is correct because it accurately describes a positive balance of trade. A trade deficit is the opposite condition, where imports exceed exports. Mercantilism is an older trade theory that emphasized accumulating wealth through exports and limiting imports, but it is not the term for the actual trade-balance condition. Resource mobility refers to the ability of labor, capital, or other resources to move from one use or industry to another.
For managers, trade surpluses can affect currency strength, export opportunities, and international competitiveness.
NEW QUESTION # 18
If the demand for a good is inelastic, what is true?
Answer: C
Explanation:
InGlobal Economics for Managers, demand isinelasticwhenquantity demanded responds only slightly to changes in price, making option B correct.
Inelastic demand is common for necessities, goods with few substitutes, or goods that represent a small portion of income. When demand is inelastic, price and total revenue move in the same direction.
Options A, C, and D describe elastic demand.
Thus, option B correctly defines inelastic demand.
NEW QUESTION # 19
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