Chapter 13 Flashcards

1
Q

What is the key principle of Samsung’s business?

A

Relentless pursuit of innovation

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2
Q

What is the estimated rate of return to a college education in the US?

A

10-15%

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3
Q

What is the term for the benefit that includes spillover effects?

A

Marginal social benefit (MSB)

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4
Q

What is the relationship between public goods and positive externalities?

A

Public goods have positive externalities

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5
Q

Is online shopping better for the environment?

A

Yes, generally more efficient.

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6
Q

What caused an increase in the number of patents beginning in the 1990s?

A

Invention of the internet

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7
Q

What does a patent do in terms of goods?

A

Makes inventions private

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8
Q

What is considered a public good?

A

New knowledge

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9
Q

What has increased globalization done to businesses?

A

Shuttered businesses and reduced wages

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10
Q

What does AFRI stand for?

A

Agriculture and Food Research Initiative

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11
Q

Why do nations subsidize education?

A

Benefits individuals and society

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12
Q

What is the R&E tax credit?

A

Research and experimentation tax credit

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13
Q

What is a public good?

A

National defense example

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14
Q

What type of goods are nonexcludable and rivalrous?

A

Common resources

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15
Q

What is one U.S. Government policy that encourages innovation?

A

Intellectual property rights

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16
Q

What are the defining characteristics of a public good?

A

Nonexcludable and non-rival

17
Q

What is a challenge of government innovation?

A

Employment change

18
Q

What do social benefits of innovation include?

A

Positive externalities and private benefits

19
Q

What does non-rival mean in public goods?

A

One person can use it without affecting another

20
Q

Do economists generally believe higher education pays off?

21
Q

Who benefits from the returns to education?

A

Individual worker

22
Q

What is a drawback of the 20-year patent period?

A

Allows monopoly pricing

23
Q

How has the reliance on R&D funding changed over time?

A

Shifted to industry-funded

24
Q

What are examples of public goods?

A

Police and fire services

25
What advantage does an innovative firm have?
Temporary edge over competitors
26
What are positive externalities of education?
Better health, lower crime, cleaner environment, stable government
27
Can goods and services with positive externalities be private?
Yes
28
Give an example of a private good with positive externalities.
Education, Apple iPad