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:

Conditioned

Describes a response that has been learned through the process of conditioning, where a neutral stimulus becomes associated with a meaningful stimulus, eliciting a learned response.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any prior learning or association.