With Respect to Innovation,which of the Following Statements Is True

question 90

Multiple Choice

With respect to innovation,which of the following statements is true?

• A)Government policy cannot influence the rate of innovation.
• B)Innovation is exogenous to the economic system.
• C)The utilization rate of existing plant and equipment and its durability are independent of the pace of innovation.
• D)The principal incentive for innovation does not appear to be related to profits.
• E)Innovation is often endogenous to the economic system.

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Definitions:

Factor of Production

An input used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Machines

Mechanical or electronic devices that perform tasks, often complex, without human intervention.

Buildings

Structures constructed for residential, commercial, or industrial purposes.

Money

A medium of exchange, a unit of account, and a store of value, used to facilitate the sale, purchase, or trade of goods and services.