When Firms Innovate by Leveraging Existing Technologies into New Markets

question 86

Multiple Choice

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in

• A) incremental innovations.
• B) radical innovations.
• C) architectural innovations.
• D) disruptive innovations.

Recognize the factors contributing to the underestimation or overestimation of GDP, including the underground economy and non-market transactions.

Identify the relationship between nominal GDP, real GDP, and the GDP deflator as indicators of economic health.

Distinguish between final goods and services and intermediate goods to prevent double counting in GDP calculation.

Understand the concept of national income and how it relates to GDP, including the various forms of income that constitute national income.

---

Definitions:

Petty Cash Receipt

A document used to record small, miscellaneous expenses paid with petty cash funds.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into a known amount of cash and close to their maturity.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

U. S. Treasury Bills

Short-term government securities issued by the United States Department of the Treasury with maturity periods of one year or less.