Exam #2 Flashcards

1
Q

All human societies have to answer 3 economic questions:

A
  1. ) What is going to be produced
  2. ) How are the chosen goods to be produced
  3. ) Who is going to get these goods
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2
Q

An implication of the AK model is that:

A

investment can generate permanent long-term growth

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3
Q

In a market economy, the need to recover the up-front costs of innovation means that perfect competition:

A

is not compatible with innovation.

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4
Q

A imperfectly competitive producer:

A

faces a downward sloping demand curve.

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5
Q

All other things equal, when the total amount/supply of productive factors and resources, R, increases, the cost of innovation (COI) curve will:

A

shift down because an increase in R lowers the price of innovation resources, w.

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6
Q

In Rebelo’s AK model, the saving function is:

A

an upward-sloping straight line.

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7
Q

Market systems are based on the principle of private property

A

True

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8
Q

The __________ provided funds for the establishment of agricultural experiment stations at each of the land-grant institutions.

A

1887 Hatch Act

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9
Q

Romer’s mathematical “Schumpeterian” model of technological change incorporates the following fundamental idea(s):

A

a. Innovations are generated by intentionally employing costly (scarce) resources to create new products, ideas, methods, etc. Incorrect
b. Innovators must compete with producers to employ the economy’s scarce, and thus costly, resources.
c. Innovation creates new products and techniques that are better, cheaper, and more attractive.
All of the above

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10
Q

Land grant universities in the United States:

A

stimulated technological innovation in a perfectly-competitive industry like agriculture

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11
Q

Which of the following concepts is not found in the Schumpeterian R&D model:

A

perfect competition.

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12
Q

_______in the Soviet Union and Eastern Europe evolved into a highly centralized command economy with most property controlled by the state.

A

Communism

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13
Q

In the R&D model of technological progress, the rate of technological progress is:

A

inversely (negatively) related to the cost of innovation

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14
Q

According to Schumpeter, entrepreneurs are the people who:

A

a. see the economic potential of inventions.
b. guide and organize the innovative process that employ inventors.
c. who arrange for the funds to finance the enterprise.
Do all of the above

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15
Q

In a traditional system of organization, how goods are distributed is often significantly influenced by

A

a. religion
b. caste
c. social obligations
All of the above

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16
Q

Total factor productivity is defined as the residual between the:

A

average growth rate of the factors of production and the growth rate of real output

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17
Q

Among the reasons why the present value of an innovation is inversely related to the total resources devoted to innovative activity,N, is/are

A

a. a higher N leads to a faster destruction of prior creations
b. a higher N reduces the amount of resources available to produce profit-generating output
All of the abov

18
Q

According to the Grabowski, Self, and Shields, the best example of a country where private property is undeveloped, yet market exchange dominates is

A

China

19
Q

In Rebelo’s AK model, the saving function is:

A

an upward-sloping straight line.

20
Q

South Korea was invaded by by North Korea in 1920.

A

False

21
Q

In general in the global economy, an increasing amount of technology is transferred between countries embodied in imported products and services.

A

True

22
Q

Technology transfers normally occur in the form of precise blueprints that are readily understood and copied.

A

False

23
Q

Robert Evenson and Lakhwinder Singh (1997) concluded that a country’s productivity growth clearly depended on the R&D expenditures of its trade partners.

A

True

24
Q

Among the conclusions of Chapter Eight’s survey of the evidence on international technology
transfers is that international flows of technology are just as fast as domestic technology flows.

A

False

25
Q

Soon after World War II, the new states of Taiwan and South Korea continued to invest in

A

the agriculture sector

26
Q

There is evidence that technological progress is a costless externality to other economic activity.

A

False

27
Q

Among the results from the study by David T. Cole and Elhana Helpman (1995) is that in small countries TFP is influenced more by domestic R&D activity than by foreign R&D activity.

A

False

28
Q

One of the two important implications of the land reforms in South Korea (land reform began in 1949) and Taiwan (land reform began in 1952) is

A

landlords as a class were eliminated in both countries

29
Q

According to Grabowski, Self and Shields, although following different catch-up paths, both South Korea and Taiwan were economic success stories.

A

True

30
Q

The international flows of technology and the flows of international trade are:

A

positively correlated, especially when one of the trade partners is a developed country.

31
Q

The volume of bilateral trade is able to explain a substantial portion of the variation in bilateral technology flows.

A

True

32
Q

Large-scale conglomerate industrial groups or combines were referred to as______in Japan during the period leading up to World War II.

A

zaibatsu

33
Q

In the case of Japan, from 1950 to 1973, gross domestic product growth(GDP) per year averaged about ___% which allowed output to double every 7 years.

A

10

34
Q

The neoclassical perspective tends to view the state as developmental, that is, it often engages in policies that harm society in general in order to benefit a politically powerful few.

A

False

35
Q

Korea became a colony of _______in 1910.

A

Japan

36
Q

The Grabowski, Self, and Shields book used the production possibilities curve to illustrate the concept of convergence. According to the book’s presentation, developing/frontier countries operate along the production possibilities curve/frontier while developed countries operate inside the production possibilities curve/frontier.

A

False

37
Q

Evidence from statistical analyses on the relationship between trade and technology flows, using patent data suggests that international trade plays a role in facilitating the flow of technology between countries.

A

True

38
Q

After World War II, South Korea sought to promote small and medium-size industries, and therefore its industrial structure was much less concentrated.

A

False

39
Q

The idea of the _________________which has often been applied to postwar Japan is that, the state selected certain industries to promote and then used its control of the banking system to direct credit to these industries.

A

developmental state

40
Q

Studies of the spread of technology among countries have shown that geographic proximity is more important for transfer of technology than international trade.

A

False

41
Q

David J. Teece (1977) and Paul David(1992) emphasized that most technology transfers between industrial plants require:

A

a. person-to-person contacts
b. follow-up information
c. training sessions
All of the above