Explain the three growth-creating properties of innovation
1 . Innovation can create cumulative changes. Most often innovation creates new features or applications of previous technology. Once technical knowledge is created it can be used over and over again.
2 . Innovation has a public good property. Innovation is available to the entire public not just to a single firm, and it is non-depletable.
3 . Innovation has an accelerator property. A steady rate of innovation produces growth in output. A higher level of expenditure on innovation leads to an increase in the growth rate of GDP.
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Your checking account balance would be counted in which measure of money?
A. M1 B. Hard money C. M2 D. It would be counted in both M1 and M2
Which of the following terms refers to price elasticity of demand calculated over a range of prices?
A. Unit elasticity B. Cross-price elasticity of demand C. Point elasticity of demand D. Arc elasticity of demand
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $10 B. $2 C. $8 D. $12
The number of brands of identical products will most likely increase as
A) the number of informed consumers increases. B) the cost of producing many brands decreases. C) the number of uninformed consumers decreases. D) None of the above.