Economics: The Basics 1st Edition by Mike Mandel

Exercise 4

Which of the following represents an increase in innovative activity? Explain.
a) A drug company hires more scientists to work on a new cancer drug.
b) A department store hires more sales clerks.
c) A university buys faster computers for its research labs.
d) An automobile manufacturer tells its engineers to figure out how to reduce the cost of car production.
e) A video game developer hires more programmers to make better graphics.