Profits from Innovation Represent Greater Than Normal Returns to Capital,because

question 21

Multiple Choice

Profits from innovation represent greater than normal returns to capital,because in the case of innovation

• A) it is extremely difficult to calculate an expected rate of return.
• B) borrowers are often taken advantage of by lenders.
• C) no one wants to lend innovators any money to finance their businesses.
• D) it leads to the formation of a natural monopoly.
• E) the rate of return generally exceeds the interest rate.

---

Definitions:

Current Flow

The movement of electric charge carriers, like electrons, through a conductor or circuit, typically described from positive to negative points.

Electron

A subatomic particle with a negative electric charge, fundamental to electricity, and a key component of atoms.

Atom

The smallest unit of a chemical element, consisting of a nucleus and electrons, forming the basis of all chemical substances.

Knock

A term often used in automotive to describe the premature combustion of fuel in the cylinder of an engine, leading to inefficient performance.