Exam 15: Technological Change

Currently the main sources for basic research are

There are often wide differences between the productivity levels of different factories making the same products because

Governments that discourage profit seeking will tend to encourage more innovation because the best innovators are motivated by inner creativity and not money.

Which of the following would tend to narrow the gap between the private return to innovation and the social return to innovation?

Suppose scientists figure out how to prevent strokes and heart attacks by using microscopic robots that enter the bloodstream and fix problems before they become serious.This could fit into two categories of innovation.They are

A region containing a group of innovative companies and the resources they need to succeed,such as Silicon Valley,is called an innovation cluster.

The largest spender on research and development in the world (in total dollars or dollar equivalents)is

The government allows inventors to apply for a temporary government monopoly on their invention.The government will prevent others from making or selling the invention for a period of years to encourage innovation.What is this temporary monopoly called?

Suppose home builders figure out how to produce houses faster by prefabricating more of the house in a factory,then transporting the components to the construction site.This saves labor time and prevents materials from being wasted.Which type of innovation is this?

Which of the following occurs if there is a quality-of-life innovation?

Over the past 20 years,the average return on venture capital investments has been around __________ per year,compared to about 10 percent for the stock market.

Which of the following best represents Moore's law?

Which of the following would tend to encourage more innovation in the United States?

The immigration of skilled scientists and engineers from other nations raises the wages of scientists and engineers.

Which of the following would raise the wages of scientists and engineers?

What does "R&D" stand for?

Technological advances that reduce pollution fall into which category of innovation?

Which of the following would tend to increase the quantity of innovative activities?

There are three different channels by which technological change can affect the economy.List these and provide a brief definition of each.

Brand-new,technologically innovative companies often receive capital from companies that specialize in high-risk start-up firms and sometimes get involved in the strategic decisions of the firm.These investment companies are known as