Question 1

Computers became powerful enough to make a real difference in the economy in the

Accepted Answer

A)  1970s. 
B)  1980s. 
C)  1990s. 
D)  2000s. 
A)  1970s. 
B)  1980s. 
C)  1990s. 
D)  2000s. C

Question 2

Economic activities primarily directed toward creating or developing new ideas and new technology are called

Accepted Answer

A)  technological diffusion. 
B)  innovative activities. 
C)  the information revolution. 
D)  technological competition. 
A)  technological diffusion. 
B)  innovative activities. 
C)  the information revolution. 
D)  technological competition. B

Question 3

Which of the following is not an example of research and development?

Accepted Answer

A)  Government funding to a biochemistry professor for the study of new pharmaceutical therapies. 
B)  Government funding to elementary and middle schools. 
C)  Government funding of new public transportation technologies. 
D)  General Motors funding a study of new internal combustion technology. 
A)  Government funding to a biochemistry professor for the study of new pharmaceutical therapies. 
B)  Government funding to elementary and middle schools. 
C)  Government funding of new public transportation technologies. 
D)  General Motors funding a study of new internal combustion technology. B

Question 4

In which of the following countries was R&D spending the highest in 2008?

Accepted Answer

A)  The United States. 
B)  China. 
C)  Japan. 
D)  Germany. 
A)  The United States. 
B)  China. 
C)  Japan. 
D)  Germany.

Question 5

The supply curve for innovative activities tells us the quantity of innovative activities supplied,given their price.

Accepted Answer

A) True 
 B)False

Question 6

Show,using a demand and supply diagram,what will happen to the wages of scientists and engineers if there is an increase in immigration of scientists and engineers from other countries.

Accepted Answer

As immigration of scientists and enginee

Question 7

AT&T,the employer of the three scientists credited with inventing the transistor,

Accepted Answer

A)  reaped very few economic benefits from the invention. 
B)  suffered economic losses because of the invention. 
C)  earned a modest 10 percent return from the invention. 
D)  earned an unprecedented 2,000 percent return from the invention. 
A)  reaped very few economic benefits from the invention. 
B)  suffered economic losses because of the invention. 
C)  earned a modest 10 percent return from the invention. 
D)  earned an unprecedented 2,000 percent return from the invention.

Question 8

A productivity-enhancing innovation has the effect of shifting the supply curve to the right.

Accepted Answer

A) True 
 B)False

Question 9

What is the difference between basic research and applied research? Provide one example of each.

Accepted Answer

Basic research is devoted to scientific

Question 10

A quality-of-life innovation generates __________ externalities or reduces __________ externalities.

Accepted Answer

A)  positive; negative 
B)  revenue; cost 
C)  marginal; average 
D)  network; out-of-network 
A)  positive; negative 
B)  revenue; cost 
C)  marginal; average 
D)  network; out-of-network

Question 11

Scientists sent the Cassini spacecraft past Saturn,where it discovered rings around Saturn's moon Rhea.This is an example of

Accepted Answer

A)  Technological diffusion. 
B)  Product development. 
C)  Applied research. 
D)  Basic research. 
A)  Technological diffusion. 
B)  Product development. 
C)  Applied research. 
D)  Basic research.

Question 12

What is a patent,and how does it encourage innovation?

Accepted Answer

Patents allow innovators to temporarily

Question 13

One important innovation cluster mentioned in the textbook is __________,which is the world center for biotech.

Accepted Answer

A)  Silicon Valley, CA 
B)  Bangalore, India 
C)  Palo Alto, CA 
D)  Cambridge, MA 
A)  Silicon Valley, CA 
B)  Bangalore, India 
C)  Palo Alto, CA 
D)  Cambridge, MA

Question 14

If a market is close to perfect competition,profits may be

Accepted Answer

A)  so low that companies do not have enough extra money to spend on long-run research. 
B)  so high that companies have no incentive to spend money on long-run research. 
C)  so low that companies have no incentive to spend money on long-run research. 
D)  so high that companies are not willing to risk any extra money on long-run research. 
A)  so low that companies do not have enough extra money to spend on long-run research. 
B)  so high that companies have no incentive to spend money on long-run research. 
C)  so low that companies have no incentive to spend money on long-run research. 
D)  so high that companies are not willing to risk any extra money on long-run research.

Question 15

Why are the private returns to innovation likely to be smaller than the social returns to innovation?

Accepted Answer

A)  Innovations are not likely to be profitable unless a large number of firms get involved in the production of the new technology. 
B)  Innovators are often so tempted by greed that they keep their innovation a secret, so the rest of society does not know of the innovation and cannot take advantage of it. 
C)  The ideas that a person or firm comes up with may leak to the rest of society, so the advantages of the innovation are not limited to the profits the innovator enjoys. 
D)  The first firm to come up with an innovation usually cannot make a profit with the innovation until other firms learn about it and copy it. 
A)  Innovations are not likely to be profitable unless a large number of firms get involved in the production of the new technology. 
B)  Innovators are often so tempted by greed that they keep their innovation a secret, so the rest of society does not know of the innovation and cannot take advantage of it. 
C)  The ideas that a person or firm comes up with may leak to the rest of society, so the advantages of the innovation are not limited to the profits the innovator enjoys. 
D)  The first firm to come up with an innovation usually cannot make a profit with the innovation until other firms learn about it and copy it.

Question 16

Microprocessors have become faster and faster since their invention in 1971,with their performance approximately doubling every 18-24 months.This trend of improvement has become known as

Accepted Answer

A)  Gates's law. 
B)  The Intel effect. 
C)  Information clustering. 
D)  Moore's law. 
A)  Gates's law. 
B)  The Intel effect. 
C)  Information clustering. 
D)  Moore's law.

Question 17

Locations like Silicon Valley,California; Cambridge,Massachusetts; and Bangalore,India have generated a large number of technological innovations,partly due to the concentration of people and capital that are specialized in innovative activities.These regions are known as

Accepted Answer

A)  innovation clusters. 
B)  information nodes. 
C)  technology cells. 
D)  human capital districts. 
A)  innovation clusters. 
B)  information nodes. 
C)  technology cells. 
D)  human capital districts.

Question 18

Scientific investigations that have no immediately obvious commercial applications are called sterile research.

Accepted Answer

A) True 
 B)False

Question 19

Television would have been considered a "new good" type of innovation because

Accepted Answer

A)  consumers already regularly listened to the radio for entertainment. 
B)  it had no equivalent in the past. 
C)  it gave companies a new source of advertising revenues. 
D)  it enhanced the quality of life for most people in the economy. 
A)  consumers already regularly listened to the radio for entertainment. 
B)  it had no equivalent in the past. 
C)  it gave companies a new source of advertising revenues. 
D)  it enhanced the quality of life for most people in the economy.

Question 20

The supply curve for innovative activities

Accepted Answer

A)  slopes downward because as the price of innovative activities rises, people will want to consume fewer innovative services. 
B)  slopes downward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business. 
C)  slopes upward because as the price of innovation rises, more people and capital will be attracted into innovative activities. 
D)  slopes upward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business. 
A)  slopes downward because as the price of innovative activities rises, people will want to consume fewer innovative services. 
B)  slopes downward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business. 
C)  slopes upward because as the price of innovation rises, more people and capital will be attracted into innovative activities. 
D)  slopes upward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business.

Computers became powerful enough to make a real difference in the economy in the

Economic activities primarily directed toward creating or developing new ideas and new technology are called

Which of the following is not an example of research and development?

In which of the following countries was R&D spending the highest in 2008?

The supply curve for innovative activities tells us the quantity of innovative activities supplied,given their price.

Show,using a demand and supply diagram,what will happen to the wages of scientists and engineers if there is an increase in immigration of scientists and engineers from other countries.

AT&T,the employer of the three scientists credited with inventing the transistor,

A productivity-enhancing innovation has the effect of shifting the supply curve to the right.

What is the difference between basic research and applied research? Provide one example of each.

A quality-of-life innovation generates externalities or reduces externalities.

Scientists sent the Cassini spacecraft past Saturn,where it discovered rings around Saturn's moon Rhea.This is an example of

What is a patent,and how does it encourage innovation?

One important innovation cluster mentioned in the textbook is __________,which is the world center for biotech.

If a market is close to perfect competition,profits may be

Why are the private returns to innovation likely to be smaller than the social returns to innovation?

Microprocessors have become faster and faster since their invention in 1971,with their performance approximately doubling every 18-24 months.This trend of improvement has become known as

Locations like Silicon Valley,California; Cambridge,Massachusetts; and Bangalore,India have generated a large number of technological innovations,partly due to the concentration of people and capital that are specialized in innovative activities.These regions are known as

Scientific investigations that have no immediately obvious commercial applications are called sterile research.

Television would have been considered a "new good" type of innovation because

The supply curve for innovative activities

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 15: Technological Change

Computers became powerful enough to make a real difference in the economy in the

Economic activities primarily directed toward creating or developing new ideas and new technology are called

Which of the following is not an example of research and development?

In which of the following countries was R&D spending the highest in 2008?

The supply curve for innovative activities tells us the quantity of innovative activities supplied,given their price.

Show,using a demand and supply diagram,what will happen to the wages of scientists and engineers if there is an increase in immigration of scientists and engineers from other countries.

AT&T,the employer of the three scientists credited with inventing the transistor,

A productivity-enhancing innovation has the effect of shifting the supply curve to the right.

What is the difference between basic research and applied research? Provide one example of each.

A quality-of-life innovation generates __________ externalities or reduces __________ externalities.

Scientists sent the Cassini spacecraft past Saturn,where it discovered rings around Saturn's moon Rhea.This is an example of

What is a patent,and how does it encourage innovation?

One important innovation cluster mentioned in the textbook is __________,which is the world center for biotech.

If a market is close to perfect competition,profits may be

Why are the private returns to innovation likely to be smaller than the social returns to innovation?

Microprocessors have become faster and faster since their invention in 1971,with their performance approximately doubling every 18-24 months.This trend of improvement has become known as

Locations like Silicon Valley,California; Cambridge,Massachusetts; and Bangalore,India have generated a large number of technological innovations,partly due to the concentration of people and capital that are specialized in innovative activities.These regions are known as

Scientific investigations that have no immediately obvious commercial applications are called sterile research.

Television would have been considered a "new good" type of innovation because

The supply curve for innovative activities

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

A quality-of-life innovation generates externalities or reduces externalities.