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Economists Who Argue That Innovation and Entrepreneurial Activity Are the Engines

question 9

True/False

Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies.


Definitions:

Perfectly Elastic

Describes a situation in market demand or supply where the quantity demanded or supplied changes infinitely in response to any change in price.

Optimal R&D

The most efficient level of investment in research and development activities that maximizes innovation and return on investment.

Interest-Rate Cost-Of-Funds

The cost associated with borrowing funds, determined by the interest rate being charged on the borrowed money.

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