An Example of a Government Policy to Enhance Technological Progress

question 136

Multiple Choice

An example of a government policy to enhance technological progress is:

• A)the construction of an interstate highway system.
• B)government support for basic research.
• C)maintaining a well-functioning legal system.
• D)the provision of publicly-funded education.

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Definitions:

Shipping Costs

The expenses involved in transporting goods from one location to another, including freight charges, packaging, and handling fees.

Diseconomies of Scale

An economic concept where an increase in production leads to a rise in average costs per unit due to inefficiencies.

Economies of Scale

Cost advantages that a business can achieve by increasing the scale of production, leading to lower average costs per unit due to spread fixed costs and operational efficiencies.

Cycle Inventory

The portion of inventory that a company rotates in and out of stock as part of its normal business operations, reflecting the frequency of production and ordering cycles.