Related to the Economics in Practice on P

question 138

Multiple Choice

Related to the Economics in Practice on p. 304: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, what would be its best strategy?

• A) The government needs to keep helping its firms find the world frontier until the firms reach the frontier.
• B) The government should begin by offering incentives and encourage some risk taking.
• C) The government needs to help its firms find the world frontier, and then as firms approach the frontier, the government should offer incentives and encourage some risk taking.
• D) The government should adopt a hands-off approach and let the private sector bring the country to the world frontier.

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Definitions:

Morphine

A powerful opioid analgesic drug derived from the opium poppy, used to relieve severe pain.

Addiction

A psychological or physical inability to stop consuming a chemical, drug, activity, or substance, even though it is causing psychological and physical harm.

Activation-Synthesis Model

A theory suggesting dreams are the result of the cerebral cortex interpreting random signals from the brainstem during REM sleep.

Acetylcholine

A neurotransmitter in the brain that plays an important role in muscle contraction, arousal, and memory.