Econ 201 Entrepreneurship and Innovation

A person who creates new products or has ideas that lead to new products is called a(n) A) innovator B) entrepreneur C) inventor D) capitalist

C

Schumpeter's model argues that the successful innovative entrepreneur's reward is A) zero economic profit B) perfect competition C) a monopoly profit D) economies of scope

C

The prime engine of growth in market economies is A) government spending B) consumer spending C) innovation D) private saving

C

Which of the following contribute to productivity growth? A) investment in plants and equipment B) innovation resulting in new products C) innovation resulting in new processes D) all of the above

D

Which of the following is considered a key economic influence on the capacity of market economies to promote unprecedented growth? A) political changes B) religious beliefs C) historical accidents D) free competition

D

A person who improves, publicizes, and markets new products is called a(n) A) innovator B) entrepreneur C) inventor D) capitalist

A

Why do firms spend money on costly innovation? A) Competitive markets leave firms no choice but to innovate. B) Innovation is a low-risk activity. C) Innovation always results in higher profits for firms. D) Innovation is usually profitable because the majority of innovations reach the market place.

A

A process innovation A) involves major modifications of earlier products B) involves changes the way in which a commodity is produced C) is the introduction of a good or service that is entirely new D) leads to an upward shift in the firm's average cost curve

B

All of the following are features of innovation that magnify its contribution to GDP growth, except A) that many innovations create cumulative changes B) the benefits of innovation are captured entirely by the individual/firm funding the innovation C) that innovation has a public goods property D) innovations act like an accelerator

B

Any individual or group that organizes firms to produce goods is called a(n) A) innovator B) entrepreneur C) inventor D) capitalist

B

Capitalism is a market economic system with A) most production processes controlled by the government B) most production processes controlled by private firms with minimal government control C) all production processes controlled by private firms D) all production processes controlled by the government

B

Per-capita income in an economy A) is the net income of that economy B) is the average income of all people in that economy C) is the difference between exports and imports in that economy D) is the difference between earnings and consumption of all people in that economy

B

What is the process that begins with invention and includes improvement to prepare the invention for practical use and marketing of the invention or its products? A) Sales B) Innovation C) Productivity D) Commercialization

B

Which of the following can be said about the average growth rates of per capita income about the entire 1,500 years before the industrial revolution? A) hovered around three percent B) approximated zero percent C) mostly above four percent D) extremely negative

B

Which of the following statements about innovation is true? A) A steady flow of innovation means that GDP remains constant. B) A steady flow of innovation is all that is necessary for GDP to grow. C) An increasing flow of innovation is necessary for GDP to grow. D) An increasing flow of innovation means that GDP remains constant.

B