In Terms of Encouraging Technological Innovation, the Government Should Intervene

question 7

True/False

In terms of encouraging technological innovation, the government should intervene to encourage growth if the market is not providing the right incentives and there is little risk of government failure.

---

Definitions:

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Production Relationships

Production relationships refer to the connections and interactions between inputs used in the production process and the resulting outputs.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs.

Unattainable

Describes a goal, level, or condition that cannot be achieved or reached, often used in the context of economic production and efficiency.