What does it mean that “innovators try to anticipate the future”? What are the economics consequences of this effort?
What will be an ideal response?
Innovators attempt to anticipate future needs. They try to develop a new process or product that will have future commercial appeal. Product innovation and development necessary for anticipating the future are creative activities that have both monetary and non monetary rewards for the innovator.
More resources for further innovation by entrepreneurs often come from past successes. Those businesses that have succeeded in meeting consumer wants are given the opportunity to produce goods and services for the market.
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When McDonald's opens a store in Dhaka, Bangladesh, it has a strong incentive to enforce product quality consistent with stores in the United States
a. True b. False Indicate whether the statement is true or false
For the monopsonist, marginal expenditure is greater than the wage rate because the monopsonist
A) pays a wage higher than that paid in a competitive market. B) chooses the perfectly competitive quantity of labor. C) must increase the wage to all units of labor to attract more units of labor. D) must take the wage as given by the market.
Refer to the table. A total output of 3 units of capital goods and 4 units of consumer goods:
Answer the question on the basis of the data given in the following production possibilities
table:
A. is irrelevant because the economy is capable of producing a larger total output.
B. will result in the maximum rate of growth available to this economy.
C. would involve an inefficient use of the economy's scarce resources.
D. is unobtainable in this economy.
Which of the following is most likely to reduce a federal budget surplus?
A. Lower inflation and lower unemployment rates. B. A booming economy with rising inflation rates. C. A recession. D. Higher inflation and higher unemployment rates.