College Aptitude Tests, Such as the SAT, Were Designed to Measure

question 7

Multiple Choice

College aptitude tests, such as the SAT, were designed to measure ________ but actually measure ________.

• A) intelligence; aptitude
• B) achievement; aptitude
• C) developed abilities; performance
• D) inherited competencies; performance
• E) aptitude; intelligence

Distinguish between the concepts of diffusion, creative destruction, and technological advancements.

Understand the impact of technological advancements on allocative and productive efficiency.

Recognize the different sources of R&D financing, including venture capital and retained earnings, and their relevance to firm size.

Understand the economic implications of the interest-rate cost-of-funds curve on R&D financing.

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Definitions:

Substitutes

Products or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increased demand for the other.

Natural Gas

A fossil fuel used as a source of energy for heating, cooking, and electricity generation, consisting mainly of methane.

Coal

A combustible black or brownish-black sedimentary rock, composed mostly of carbon and hydrocarbons, used as a fossil fuel.