For the Average American, Innovation Has Led To

question 6

Multiple Choice

For the average American, innovation has led to:

• A)​an average income that is below many countries because of monies spent on R&D 
• B)​an average income that is not paralleled anywhere in the world 
• C)​an average income that exceeds that of all but the richest countries 
• D)​None of the above is correct.

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Definitions:

Time-inconsistency Problem

The situation where a decision-maker's preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Fiscal Policy

A government's strategy for managing its budget through taxation and spending measures to influence economic conditions, including growth rates, inflation, and unemployment.

Price Level

An index reflecting the average of current prices across the entire spectrum of goods and services produced in the economy.

Time-inconsistency Problem

A situation where a decision-maker's preferences change over time in such a way that what is considered optimal at one time is no longer optimal later.