Question :
81) A successful market economy requires well defined property rights : 1245001
81) A successful market economy requires well defined property rights and
A) balanced supplies of all factors of production.
B) an independent court system to adjudicate disputes based on the law.
C) detailed government regulations.
D) a safety net to ensure that those who cannot participate in the market economy can earn an income.
82) All of the following are considered intellectual property except
A) books.
B) films.
C) software.
D) shares fo stock.
83) A guild is
A) a group of independent producers competing with each other.
B) an organization of producers that limits the amount of a good produced.
C) a group of nations who agree not to compete with each other.
D) a nation that is a free market benchmark.
84) In 18th century Europe, governments gave guilds legal authority to limit production of goods. This authority obstructed the market mechanism because the guild’s actions prevented the forces of ________ from coordinating the self-interested decisions of producers and consumers.
A) absolute advantage
B) demand and supply
C) opportunity cost
D) nature
85) When a celebrity has the desire to have his image protected following his death, this is best described as an example of the protection of
A) an invention.
B) a patent.
C) a trademark.
D) intellectual property.
86) In the desire to have a celebrity’s image protected to prevent it from being used in ways he would not approve, a celebrity’s estate
A) will probably not be successful, since there are no laws regulating this kind of use in the United States.
B) will have to be granted a patent declaring the celebrity’s image a new product, and this will give the estate protection for 7 years.
C) can rely on U.S. laws that protect intellectual property rights to prevent the unauthorized use of his image.
D) will most likely be more successful in developing countries than in high-income countries, since property regulations are better enforced in developing countries.
87) Which of the following is a factor of production?
A) an acre of forested land
B) a U.S. Treasury bond
C) 20 shares of Ford stock
D) $25,000 in cash
88) Which of the following is an example of spending on goods and services in the circular flow model?
A) Micah purchases a new wrench for his auto repair business.
B) Chester buys a first-class ticket from Atlanta to London for his long-awaited vacation.
C) Toby buys a new lawn mower to use in his lawn care business.
D) Lily purchases a new massage table for use in her therapy center.
Since 2008, the United States has been involved in trade negotiations over the Trans-Pacific Partnership (TPP), a free trade agreement with 11 other countries on both sides of the Pacific Ocean. One area of the negotiations involves patents and intellectual property rights in the pharmaceutical industry. A number of developing countries have ignored international agreements concerning patents and intellectual property rights as a way to benefit their domestic pharmaceutical industries, to the detriment of those companies which have spent considerable time and money developing new medicines. For every 5,000 to 10,000 experimental drugs contemplated, only one will typically gain FDA approval, and this occurs only after up to 15 years of research at an average cost of more than $1 billion. Also, 30 percent of the U.S. workforce is either directly or indirectly employed in the pharmaceutical industry, so protection of these intellectual property rights is very important for the U.S. economy.
Source: Doug Schoen, “Intellectual Property Rights Matter,” Forbes, September 24, 2013.
89) Refer to the Article Summary. If these developing countries continue to ignore the international agreements which protect intellectual property rights, all of the following would most likely occur except
A) pharmaceutical companies would decrease investment in the development of more experimental drugs.
B) pharmaceutical companies would consider expanding operations to these developing countries.
C) fewer patents would be issued to pharmaceutical companies.
D) fewer dollars would be spent on the development of new medicines.
90) Because the copyright on the L. Frank Baum book The Wonderful Wizard of Oz expired many years ago, the actual written words from the book are in the public domain, which means
A) any publisher can now can claim copyright of Baum’s words.
B) only the first publisher to reissue the book can claim copyright of Baum’s words.
C) no publisher can claim copyright of Baum’s words, but the book can be reissued by any publisher.
D) no publisher can claim copyright of Baum’s words because the book can never be reissued.
