The Rewards to Private R&D Are Positively Related To

question 13

Multiple Choice

The rewards to private R&D are positively related to:

• A)the costs of R&D.
• B)growth rate of capital per worker.
• C)the security of intellectual property rights.
• D)all of the above.

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Definitions:

Economic Rent

A payment made for the use of a good, service, or resource above and beyond what is necessary to encourage its production or supply.

Nonreproducible Resources

Natural resources that cannot be replaced or regrown at a pace that matches their consumption.

Perfectly Elastic

Refers to a situation in demand or supply where quantity changes infinitely with any change in price.

Compounded

In finance, it refers to the process where interest is calculated on the initial principal and also on the accumulated interest of previous periods.