When Technology Spillover Occurs

question 176

Multiple Choice

When technology spillover occurs,

• A)it is the government's responsibility to own firms that are engaged in high-tech research.
• B)a firm's research yields technological knowledge that can then be used by society as a whole.
• C)those firms engaged in technology research should be taxed by the government.
• D)firms invest in the latest production technology and the cost of that technology "spills over" to the prices consumers must pay for the product.

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Definitions:

Foreign Exchange Market

The global marketplace for trading currencies, determining the foreign exchange rates for every currency.

Depreciation

The decrease in value of an asset over time, often due to wear and tear or obsolescence.

Dollar

A unit of currency used in various countries, notably the United States, and recognized by its symbol $.

Appreciation

An increase in the value of an asset or currency over time.