When Technology Spillover Occurs

question 176

Multiple Choice

When technology spillover occurs,

• A)it is the government's responsibility to own firms that are engaged in high-tech research.
• B)a firm's research yields technological knowledge that can then be used by society as a whole.
• C)those firms engaged in technology research should be taxed by the government.
• D)firms invest in the latest production technology and the cost of that technology "spills over" to the prices consumers must pay for the product.

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Definitions:

Work in Process

Represents goods that are in the process of being manufactured but are not yet complete.

Indirect Materials

Materials used in the production process that do not become an integral part of the final product and are not directly traceable to specific goods.

Nonmanufacturing Costs

Expenses not related to the production of goods, such as selling, administrative, and financial costs.

Work in Process

Stock that consists of items that are in the midst of production but have not yet reached completion.