Economists Refer to Knowledge "Spillovers" as Externalities, and There Is

question 89

True/False

Economists refer to knowledge "spillovers" as externalities, and there is a well-established theory suggesting that firms can benefit from such externalities by locating close to their source.

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Definitions:

Levels-of-processing

A theory suggesting that the depth of mental processing affects memory; deeper processing leads to better recall.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex functions such as thought, language, and consciousness.

Short-term Memory

The part of the memory system where information is stored for a short duration, often considered to be about 20 to 30 seconds.

Levels-of-processing

A theory suggesting that memory retention is directly related to the depth at which information is processed.