What role does research and development play in increasing productivity?
What will be an ideal response?
Research and development refers to the activities directed at improving scientific knowledge, generating new innovations or implementing of existing knowledge to production in order to improve the technology of a firm or an economy. Since an improvement in technology increases productivity, research and development facilitates increases in productivity.
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A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm. ii. an external cost. iii. part of the marginal social cost
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Suppose that the economy is producing above potential GDP and the Fed implements the correct change in monetary policy, but not until after the economy has passed the peak of the boom. Then
A) the Fed's contractionary policy will result in too small of a decrease in GDP. B) the Fed's expansionary policy will result in too small of a decrease in GDP. C) the Fed's contractionary policy will result in too large of a decrease in GDP. D) the Fed's expansionary policy will result in too large of an increase in GDP.