Inventors in Developing Countries Are Usually Unable to Capture the Full

question 20

Multiple Choice

Inventors in developing countries are usually unable to capture the full benefit of their innovations.They therefore tend to devote too few resources to research.Government can address this problem of under-investment in research by:
(i) increasing restrictions on trade
(ii) establishing a patent system to provide inventors with exclusive control over their inventions for a period of time
(iii) subsidising the purchase of technology from other countries.

• A)only (i) is used
• B)only (ii) is used
• C)only (iii) is used
• D)(i), (ii) and (iii) are all used

---

Definitions:

Dairy Queen

A chain of soft serve ice cream and fast-food restaurants.

Incentive

A thing that motivates or encourages someone to do something, often seen in psychology as a way to influence behavior.

Homeostasis

The process by which biological systems maintain stability and equilibrium while adjusting to changes necessary for survival.

Drive-Reduction Theory

A theory that postulates that the motivation for behavior arises from biological needs that drive an organism to seek homeostasis or a state of balance.