The Central Problem Leading to the Development of the Economics

question 19

Multiple Choice

The central problem leading to the development of the economics of information is that:

• A)firms can appropriate all of the gains to their innovations.
• B)information is costly to produce but cheap to reproduce.
• C)the demand for computer technology is perfectly inelastic.
• D)the supply of computer technology is perfectly inelastic.
• E)firms cannot patent information technology.

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Definitions:

HOMO

Highest Occupied Molecular Orbital, the topmost energy level occupied by electrons in a molecule under normal conditions.

Allyl Anion

A negatively charged allyl group (a three-carbon chain with a double bond) that acts as a nucleophile in organic reactions.

LUMO

Lowest Unoccupied Molecular Orbital, which is the lowest energy molecular orbital that is currently unoccupied by electrons and can accept an electron.

Pentadienyl Anion

A negatively charged ion formed by removing a proton from a pentadiene, featuring five carbon atoms connected with alternating single and double bonds.