A market economy encourages innovation because _____.
A. state ownership of enterprises reduces risks of innovation
B. economic freedom leads to greater incentives for innovation
C. government-owned and funded research centers become hubs of innovation
D. the prices of goods and services, including new products, are fixed by government
Answer: B. economic freedom leads to greater incentives for innovation
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What is (are) the Nash equilibrium (equilibria) in the game shown below?
A. D; d
B. none of these
C. U; u
D. D; u
E. U; d
A welfare state is one in which the state:
a. encourages private development of health and education facilities b. pays for building of roads and bridges to facilitate economic development c. provides some public goods and services like education and health care d. maintains ownership of all public utilities and public transportation