Joanna Has Developed and Patented a New Process for Recycling

question 16

Multiple Choice

Joanna has developed and patented a new process for recycling discarded tires. A multinational corporation has expressed an interest in buying her company in order to gain access to the technology and keep it exclusively for itself. Should Joanna sell her company, the buyer will have acquired technology via

• A)acquisition of the technology owner.
• B)a joint venture.
• C)a licensing agreement.
• D)contracted development.
• E)purchase.

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Definitions:

Multiplier Effect

The proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Fiscal Policy

The manipulation of economic activity through fiscal policies involving spending and taxation by a government.

Aggregate Demand

The cumulative demand for every service and product in an economic system, measured at an overall given price level for a specific time frame.

Marginal Propensity to Consume

The proportion of an increase in income that an individual or population spends on goods and services as opposed to saving.