Technological Progress and Economic Growth #4/5

According to Robert Solow, what happens to GDP per capita as capital increases?

• It increases by a larger amount

• It increases by a smaller amount

• It remains constant

• It decreases

• It decreases by a smaller amount

What did Solow's research in the 1950s conclude about the main driver of GDP per capita growth?

• Steadily increasing capital per worker

• Changes in total factor productivity (TFP)

• Increased investment in education

• Government policies

• Monetary policies

What is the term coined by Joseph Schumpeter to describe the replacement of old methods with new and more productive ways?

• Creative destruction

• Technological unemployment

• Innovation today

• Appropriation

• Creative inception

What is one reason why inventors may choose not to invest in R&D projects with good average returns?

• The inherent risk of invention

• Lack of funding

• Lack of knowledge

• Lack of interest

• The pessimism of the future

What is one way firms try to appropriate the value of innovation?

• Secrecy

• Competition

• Collaboration

• Government intervention

• Corruption

What is the main challenge of appropriating the value of innovation?

• Non-rivalry

• Non-excludability

• Lack of funding

• Lack of interest

• Lack of passion

What is one method used to stop competitors from stealing an idea?

• Secrecy

• Competition

• Collaboration

• Government intervention

• Coded messages

What is the term for a good that can't be shared between more than one person without diminishing it?

• Rival good

• Non-rival good

• Excludable good

• Non-excludable good

• Scarce goods

What is the term for a good that is impossible to prevent people from accessing?

• Rival good

• Non-rival good

• Excludable good

• Non-excludable good

• Ample reserves

What is one reason why innovation can have high returns?

• Non-rivalry of ideas

• Competition among inventors

• Lack of funding

• Lack of interest

• Artificial Intelligence