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Economics
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28 Oct 2020

9. Which of the following statements about knowledge is FALSE?

a. Knowledge can have an external benefit.

b. Patents help create incentives for creating knowledge and do so without any cost.

c. Intellectual property rights can help create incentives for the accumulation of more knowledge.

d. As a productive resource, knowledge might not be subject to diminishing productivity.

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Microeconomics
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Defining Positive externality
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Raushan Raj
Raushan RajLv8
28 Oct 2020

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Related questions

1) According to new growth theory,

A) physical capital is nonexcludable.

B) knowledge capital is excludable.

C) knowledge capital is subject to increasing returns.

D) knowledge capital is rival and excludable.

2) Knowledge capital is nonrival in the sense that

A) two people can use the same knowledge to develop and produce a product.

B) firms do not compete to be the first to develop new technologies.

C) no single company can be excluded from the benefits of new technologies.

D) firms can benefit from the research and development of rival firms without paying for that

benefit.

3) Which of the following government provisions would help increase the accumulation of knowledge capital?

A) patents

B) copyrights

C) education subsidies

D) All of the above are correct.

4) Which of the following government policies would most likely result in an increase in economic growth?

A) a decrease in the life of a patent from 20 years to 15 years

B) a decrease in the interest rate at which the government provides student loans

C) a decrease in government spending on grants issued through the National Institutes of Health

D) decreased copyright protection on music and movies

5) Creative destruction means that

A) firms develop new products that replace old products in the economy, thereby encouraging

economic growth.

B) economic growth can only be sustained if capital depreciates rapidly.

C) knowledge capital can be created through a system of government subsidies for education and research and development.

D) research and development should only be financed if research and development are incremental (a result of making small changes to existing products).

6) Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

A) continuing technological change

B) immigration

C) additions of a greater amount of capital of the same quality

D) a decrease in the quality of labor

7) By offering more generous unemployment insurance programs, European countries can expect

A) to pay less in taxes than in the United States.

B) workers to gain new skills quickly in response to fluctuations in the labor market.

C) shorter periods of unemployment for their workers.

D) longer periods of unemployment for their workers.

When an owner of a productive resource deploys that resource where he gets the highest price for it, he is not only deploying that resources where it will create greatest value of final output but is also maximizing his own welfare. The greed of the owner and the efficient allocation of productive resources are congruent in a capitalist economy.

1) Which of the following things would increase the value of Total Factor Productivity (TFP)?

a. A new production method that can produce smaller, more efficient microchips.

b. None of the other answers.

c. A company hires a large amount of workers after building a brand new factory.

d. Foreign investors invest in physical capital.

2) The country of Rupertopia has one factory for all its workers in 2011 and 2012. There were 100 workers in 2011 and 150 workers in 2012. Additionally, there were 200 people living in Rupertopia in 2011 and 1,000 people in 2012. Real GDP was one million dollars in 2011 and two million dollars in 2012. Which of the following statements regarding labor productivity is true:

a. Labor productivity in Rupertopia exhibits constant returns.

b. Labor productivity in Rupertopia exhibits increasing returns.

c. Labor productivity in Rupertopia exhibits diminishing returns.

d. More information is needed to determine whether labor productivity in Rupertopia exhibits diminishing, constant, or increasing returns.

3) Which of the following changes would help to improve a country's productivity level?

a. Improvements in the health of workers

b. None of the other answers.

c. Tuition increases at local Universities

d. A lower birth rate

4) When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly. This statement:

a. is an assertion that capital is subject to increasing returns.

b. is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant.

c. represents an unconventional view of the production process.

d. All of the other answers are correct.

5) Economic growth can be influenced by government policies. Which of the following can influence the economy's growth rate?

a. All of the other answers are correct

b. Promoting research and development of technologies

c. Fostering education

d. Maintaining property rights

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