6. Problems and Applications Q6 Which of the following is true about general knowledge? It is considered a public good. It is considered a private good. It is considered a club good. It is considered a common resource. As a result, private firms undertake the efficient amount of basic scientific research. Which of the following policies has the United States adopted in response to this problem? Check all that apply.

The proliferation of bittorrent and other file sharing media have threatened the copyright system. based on an understanding of incentives and opportunity cost, how are the decisions of musicians likely impacted?

Which of the following actions is most likely to result in a decrease in the money supply? a. the discount rate on overnight loans is lowered. b. the government sells a new batch of treasury bonds. c. the federal reserve bank buys treasury bonds. d. the required reserve ratio for banks is decreased. 2b2t

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?