What role does research and development play in increasing productivity?
What will be an ideal response?
Research and development refers to the activities directed at improving scientific knowledge, generating new innovations or implementing of existing knowledge to production in order to improve the technology of a firm or an economy. Since an improvement in technology increases productivity, research and development facilitates increases in productivity.
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If a corporation cannot pay its debts, creditors cannot seek payment from shareholders' personal wealth
a. True b. False Indicate whether the statement is true or false
Total surplus in a market is equal to
a. consumer surplus + producer surplus. b. value to buyers - amount paid by buyers. c. amount received by sellers - costs of sellers. d. producer surplus - consumer surplus.
For a given level of inflation, if concerns about future weakness in the economy cause businesses to reduce their spending on new capital, then the ________ shifts ________.
A. aggregate demand curve; left B. short-run aggregate supply line; downward C. aggregate demand curve; right D. short-run aggregate supply line; upward
Along a perfectly competitive industry's long-run supply curve
A) economic profits are positive. B) economic profits are zero. C) the market price is higher than the marginal costs of firms D) the number of firms is constant.