AHW2-10 - Econ 1500:Answer Key Productivity& the New...

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Econ 1500:Answer Key 1. Technological progress is encouraged by: . the patent system. . tax incentives for research and development. . government subsidies for research. . all of the above. 2. Which of the following reasons would theoretically justify a government subsidy to investment in certain areas: . a decline in the rate of investment in these areas. . the identification and measurement of technological externalities in capital accumulation in these areas. c a decline in the real interest rate in the economy. . all of the above. 3. What two elements account for total factor productivity growth? a.____ technology _ ________ b. ____ efficiency _ ________ 4. What are two special characteristics about technology? a. __ non-rival ____________ b. ___ large externalities ___________ 5. True /False: Non-rivalness implies that you and I can use the good at the same time without hurting or using-up the good. 6. True/
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AHW2-10 - Econ 1500:Answer Key Productivity& the New...

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