Eco 535 - Digital Economy » Winter 2022 » Wk 2 Practice Ch 15, Technology, R and D, and Efficiency
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Question #1
Which of the following are characteristics of an entrepreneur?
A.
Innovator, Risk bearer, Initiator
B.
Buyer
C.
Risk bearer
D.
Buyer, Innovator
Question #2
How do improvements in technology increase a firm's profits?
A.
Reduce the firm's revenue. Reduce the firm's costs
B.
Raise the firm's revenue. Reduce the firm's costs
C.
Raise the firm's revenue. Raise the firm's costs
D.
Reduce the firm's revenue. Raise the firm's costs
Question #3
Technological advance occurs during a period which can be as short as a few months or as long as ______.
A.
two years
B.
six months
C.
one year
D.
many years
Question #4
Economic efficiency can improve as a result of ______.
A.
patents
B.
technological advance
C.
externalities
D.
brand-name recognition
Question #5
A new product or process combined with the first sign that it will work, is called what?
A.
Diffusion
B.
Efficiency
C.
Innovation
D.
Invention
Question #6
Process innovation increases the productivity of resources and reduces average total costs, thereby improving ______.
A.
allocative efficiency
B.
both productive and allocative efficiency
C.
neither productive nor allocative efficiency
D.
productive efficiency
Question #7
How can it be beneficial to be the first firm to innovate?
A.
The imitation problem is no longer an issue.
B.
The first firm always achieves its expected rate of return.
C.
A large firm may initiate a buyout of the innovating firm.
D.
The first firm can avoid a fast-second strategy.
Question #8
_____is the successful commercial introduction of a new product, new process, or new type of business enterprise.
A.
Innovation
B.
Invention
C.
Diffusion
Question #9
Combining productive resources of land, labor, and capital in ways to produce new goods and services, refers to what?
A.
Entrepreneurial ability
B.
Innovation
C.
Diffusion
D.
Economic growth
Question #10
In what time period does technological advance occur?
A.
Very long run
B.
Long run
C.
Short run
D.
Market period
Question #11
A(n)_____ is a new product or process combined with first proof that it will work.
A.
innovation
B.
invention
C.
diffusion
Question #12
How does process innovation improve productive efficiency?
A.
Average total costs fall.. Resources are used to produce the right amount of a product.
B.
The cost to hire labor increases. Resources are used to produce the right amount of a product.
C.
Productivity of resources increases. Average total costs fall.
Question #13
What is it called when a new product, or new production technique, or new form of business enterprise are successfully introduced on a commercial basis?
A.
Creative destruction
B.
Diffusion
C.
Innovation
D.
Invention
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