Question

QUESTION 6

Per class discussion, the most common barrier to entry for oligopolies are:

	a.	economies of scale.
	b.	excess profits.
	c.	variable costs of production.
	d.	government protection.

QUESTION 20

Nonrivalry in the Romer model means that ideas created can:

	a.	benefit only similar economies.
	b.	benefit only a few economies across the world.
	c.	be used only in the economy that devised them.
	d.	benefit virtually all economies across the world.
	e.	None of these answers is correct.

QUESTION 22

In the Romer model, if an economy’s share of researchers decreases, there will be:

	a.	an immediate increase in output and output growth will accelerate.
	b.	an immediate decrease in output and output growth will slow.
	c.	no change in output but output growth will slow.
	d.	an immediate decrease in output and output growth will accelerate.
	e.	an immediate increase in output and output growth will slow.

Answer 1

6. The most common barrier to entry for oligopolies is government protection (patent)

So, the correct answer is an option (d).

20. Nonrivalry in the Romer models means that ideas created can benefit virtually all economies across the world.

So, the correct answer is an option (d).

22. In the Romer model, if an economy's share of a researcher decreases, there will be an immediate increase in output and output growth will slow.

So, the correct answer is an option (e)