Why Would Knowledge Capital Exhibit Increasing Returns for an Entire

question 75

Multiple Choice

Why would knowledge capital exhibit increasing returns for an entire economy, but not for an individual firm?

• A)Its non-rival nature means small gains in productivity can be enjoyed by thousands of firms at once.
• B)Its non-rival nature means that firms must compete to enjoy the benefits fo knowledge capital.
• C)Its non-excludable nature means that firms have an extra incentive to produce knowledge capital.
• D)Its non-excludable nature means that use by one firm does not reduce the benefit of knowledge capital to another.
• E)Its non-excludable nature means that small gains in productivity cannot be captured by just one firm.

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Definitions:

Textualism

A legal interpretation method that emphasizes the text of the law as the primary source of meaning, often associated with conservative approaches to jurisprudence.

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution, ratified in 1868, grants citizenship to all persons born or naturalized in the U.S., prohibits states from denying any person life, liberty, or property without due process of law, and guarantees equal protection under the laws.

Anti-federalists

Opponents of the ratification of the U.S. Constitution who feared the creation of a strong central government, preferring more power to be held by the states.

Supreme Court

The highest court in the federal judiciary of the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.