During the Recession of 2001

question 36

Multiple Choice

During the recession of 2001,

• A)there were a number of proposals for tax increases or spending cuts to stir the economy,but they failed due to worries about their effects on the already large deficit.
• B)a series of tax cuts were passed,though they only occurred in late 2001.
• C)all the proposed tax and spending cuts were approved in order to motivate the economy and reduce the large deficit.
• D)the cyclical deficit increased but the structural deficit remained unchanged.
• E)None of the above

Determine the conditions under which a firm should expand or reduce its R&D expenditures.

Understand the concept and importance of process innovation in improving production methods and its impact on a firm's total product curve and cost structure.

Grasp how consumer choices between new and existing products are influenced by marginal utility (MU), price (P), and the marginal utility-to-price ratio (MU/P).

Recognize the significance of product and process innovation on firm profitability and competitive advantage.

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Definitions:

Metamorphosis

A profound change in form from one stage to the next in the life history of an organism, as from caterpillar to butterfly.

Larva

The immature, wingless, and often worm-like stage in the life cycle of insects, before they transform into adults.

Pupa

A transitional stage of a developing insect, after larva and before adulthood, during which it undergoes transformation.

Cocoon

A protective casing spun by the larvae of many insects, inside which they undergo metamorphosis into their adult form.