Once a New Technology Spreads and Is Adopted by Many

question 138

Multiple Choice

Once a new technology spreads and is adopted by many countries:

• A)the first country to use it may lose its comparative advantage.
• B)the first country to use it will lose its absolute advantage.
• C)other countries will perfect it, putting them at an absolute advantage.
• D)the country of origin will want to enact strict intellectual property rights.

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Definitions:

Government Policy

Actions and strategies designed and implemented by government bodies to achieve specific societal goals.

Producer Surplus

The difference between the amount a producer is paid for a good versus the minimum amount they would be willing to accept for the good.

Government Policy

Official strategies or principles that a government adopts and implements to guide decisions and achieve rational outcomes.

Producer Surplus

The discrepancy in the expected versus actual earnings of sellers for goods or services.