Question 1

Technological advance is a three-step process involving:

Accepted Answer

A)  invention,duplication,and diffusion. 
B)  duplication,innovation,and diversity. 
C)  invention,innovation,and diffusion. 
D)  necessity,invention,and solution. 
A)  invention,duplication,and diffusion. 
B)  duplication,innovation,and diversity. 
C)  invention,innovation,and diffusion. 
D)  necessity,invention,and solution.

Question 2

Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later.The firm will:

Accepted Answer

A)  undertake the R&D expenditure if its interest-rate cost of borrowing is 12 percent. 
B)  undertake the R&D expenditure if its interest-rate cost of borrowing is 10 percent. 
C)  not undertake the R&D expenditure if its interest-rate cost of borrowing is 9 percent. 
D)  not undertake the R&D expenditure if its interest-rate cost of borrowing is 7 percent. 
A)  undertake the R&D expenditure if its interest-rate cost of borrowing is 12 percent. 
B)  undertake the R&D expenditure if its interest-rate cost of borrowing is 10 percent. 
C)  not undertake the R&D expenditure if its interest-rate cost of borrowing is 9 percent. 
D)  not undertake the R&D expenditure if its interest-rate cost of borrowing is 7 percent.

Question 3

Technological advance improves productive efficiency by:

Accepted Answer

A)  lowering average total cost. 
B)  increasing marginal utility. 
C)  enhancing monopoly power. 
D)  giving society a more-preferred mix of goods and services. 
A)  lowering average total cost. 
B)  increasing marginal utility. 
C)  enhancing monopoly power. 
D)  giving society a more-preferred mix of goods and services.

Question 4

As pizza topped with barbecue chicken became popular at specialty restaurants,Pizza Hut introduced a similar pizza.This imitation illustrates:

Accepted Answer

A)  innovation. 
B)  invention. 
C)  creative destruction. 
D)  diffusion. 
A)  innovation. 
B)  invention. 
C)  creative destruction. 
D)  diffusion.

Question 5

Other things equal,patents:

Accepted Answer

A)  decrease the expected rate of return on an R&D expenditure. 
B)  increase the expected rate of return on an R&D expenditure. 
C)  increase the interest-rate cost of funds used to finance an R&D expenditure. 
D)  decrease the interest-rate cost of funds used to finance an R&D expenditure. 
A)  decrease the expected rate of return on an R&D expenditure. 
B)  increase the expected rate of return on an R&D expenditure. 
C)  increase the interest-rate cost of funds used to finance an R&D expenditure. 
D)  decrease the interest-rate cost of funds used to finance an R&D expenditure.

Question 6

Process innovation refers to:

Accepted Answer

A)  development of new products. 
B)  implementation of better methods of producing products. 
C)  first discovery of new scientific principles. 
D)  widespread imitation of innovations. 
A)  development of new products. 
B)  implementation of better methods of producing products. 
C)  first discovery of new scientific principles. 
D)  widespread imitation of innovations.

Technological advance is a three-step process involving:

Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later.The firm will:

Technological advance improves productive efficiency by:

As pizza topped with barbecue chicken became popular at specialty restaurants,Pizza Hut introduced a similar pizza.This imitation illustrates:

Other things equal,patents:

Process innovation refers to:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

The Demand for Resources

Wage Determination

Rent Interest and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Filters

Exam 14: Technology RD and Efficiency

Technological advance is a three-step process involving:

Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later.The firm will:

Technological advance improves productive efficiency by:

As pizza topped with barbecue chicken became popular at specialty restaurants,Pizza Hut introduced a similar pizza.This imitation illustrates:

Other things equal,patents:

Process innovation refers to:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

The Demand for Resources

Wage Determination

Rent Interest and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Filters