The Fast Pace of Technological Progress in the U

question 45

Multiple Choice

The fast pace of technological progress in the U.S. is due to the fact that:

• A) the world's largest percentage of scientists and engineers work in the U.S.
• B) the U.S. has the world's largest capital stock.
• C) the U.S. spends the world's largest percentage of GDP in funding research and development.
• D) the U.S. spends the world's largest percentage of GDP in funding research and development in defense- related areas.

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Definitions:

Price of Capital

The cost of using capital, which can include the interest rate on loans or the rate of return required by investors on their investment in a company.

Units of Output

The quantity or number of items produced by a company, individual, or production process.

Fixed Cost

Costs that do not vary with the volume of output produced, such as rent, salaries, or loan payments.

Mortgage Payments

Regular payments made to repay a loan taken out to purchase property, typically consisting of both principal and interest components.