True

1.A free-rider problem arises when individuals presume that others will pay for public goods so that,

individually, they can escape from paying for their portion without reducing production of the public good.

Select one:

True

False

2.In a monopolistically competitive industry, firms can earn economic profits in the short run that lead to industry exit and zero long-run economic profits.

Select one:

True

False

3.Most foreign direct investment occurs through the actions of small firms with operations that spill over to only one or two other countries.

Select one:

True

False

4.Technological improvement is the production of a wider array of goods and services that more fully provide consumer satisfaction.

Select one:

True

False

5.The geographic-based rationale for international trade is that firms seeking to take advantage of external economies and agglomeration naturally exchange products across borders, thereby generating international trade.

Select one:

True

False

6.Under the TRIPS agreement, copyrights have a minimum duration of 50 years.

Select one:

True

False

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