How does innovation differ from invention? Why is innovation required for economic growth?
What will be an ideal response?
Innovation involves the transformation of an invention into something that benefits the economy by lowering production costs or by providing a new good or service. It is innovation, then, that stimulates economic growth.
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Assume that there are two types of perfectly competitive firms whose cost of production differ. An increase in input prices will lead to an exodus of high cost firms before low cost ones
Indicate whether the statement is true or false
What must be present to realize gains from comparative advantage and specialization?
a. government b. credit c. trade d. currency
With a nominal interest rate of 5%, the present discounted value of $100 to be received in one year is
A) $90.91. B) $95.23. C) $181.82. D) $190.00. E) $220.00.
Refer to the given data. Beta:
Answer the question on the basis of the following production possibilities data for two countries, Alpha and Beta, which have populations of equal size.
A. should specialize in catching fish and trade with Alpha for chips.
B. should specialize in producing chips and trade with Alpha for fish.
C. will not realize gains from specialization and trade.
D. will export both fish and chips to Alpha.