Question 1

The more money firms spend on R&D the faster the economy is expected to grow.

Accepted Answer

A) True 
 B)False

Question 2

The ____ of an economy is the value of all goods and services produced there, divided by the total labor time devoted to the economy's productive activities.

Accepted Answer

A)  earnings 
B)  efficiency 
C)  productivity 
D)  investment 
A)  earnings 
B)  efficiency 
C)  productivity 
D)  investment

Question 3

Distinguish between invention and innovation.

Accepted Answer

Invention is the creation of new product

Question 4

The proliferation of new products that we are used to today has been occurring since the advent of the Industrial Revolution.

Accepted Answer

A) True 
 B)False

Question 5

We cannot rely upon the free market to devote enough resources to innovation because innovation

Accepted Answer

A)  generates negative externalities. 
B)  is undertaken only by monopolies. 
C)  generates positive externalities. 
D)  will never be undertaken by private firms. 
E)  is funded by the government. 
A)  generates negative externalities. 
B)  is undertaken only by monopolies. 
C)  generates positive externalities. 
D)  will never be undertaken by private firms. 
E)  is funded by the government.

Question 6

The Industrial Revolution refers to the stream of new technology and the resulting growth of output than began in England toward the end of the eighteenth century.

Accepted Answer

A) True 
 B)False

Question 7

Do free markets spend enough on R&D activities? Explain your answer.

Accepted Answer

Free markets will generate enough spendi

Question 8

One of the great strengths of the market system is the way it acts as an engine of economic growth and innovation.

Accepted Answer

A) True 
 B)False

Question 9

____ of patents occurs when each of two firms agrees to let the other use some specified set of its patents, either at a price specified in their agreement or in return for access to the other firm's patents.

Accepted Answer

A)  Cross licensing 
B)  Technology trading 
C)  Process innovation 
D)  Ratcheting 
A)  Cross licensing 
B)  Technology trading 
C)  Process innovation 
D)  Ratcheting

Question 10

The Industrial Revolution describes

Accepted Answer

A)  the factory system that developed in the United States at the end of the nineteenth century. 
B)  the stream of new technology and resulting growth of output that began in the United States toward the end of the eighteenth century. 
C)  the stream of new technology and resulting growth of output that began in England toward the end of the eighteenth century. 
D)  the factory system that developed in England at the end of the nineteenth century. 
E)  the factory system that developed simultaneously in England and the United States in the late eighteenth century. 
A)  the factory system that developed in the United States at the end of the nineteenth century. 
B)  the stream of new technology and resulting growth of output that began in the United States toward the end of the eighteenth century. 
C)  the stream of new technology and resulting growth of output that began in England toward the end of the eighteenth century. 
D)  the factory system that developed in England at the end of the nineteenth century. 
E)  the factory system that developed simultaneously in England and the United States in the late eighteenth century.

Exam 16: The Market's Prime Achievement: Innovation and Growth

The more money firms spend on R&D the faster the economy is expected to grow.

The ____ of an economy is the value of all goods and services produced there, divided by the total labor time devoted to the economy's productive activities.

Distinguish between invention and innovation.

The proliferation of new products that we are used to today has been occurring since the advent of the Industrial Revolution.

We cannot rely upon the free market to devote enough resources to innovation because innovation

The Industrial Revolution refers to the stream of new technology and the resulting growth of output than began in England toward the end of the eighteenth century.

Do free markets spend enough on R&D activities? Explain your answer.

One of the great strengths of the market system is the way it acts as an engine of economic growth and innovation.

____ of patents occurs when each of two firms agrees to let the other use some specified set of its patents, either at a price specified in their agreement or in return for access to the other firm's patents.

The Industrial Revolution describes

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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