Related to the Economics in Practice on P

question 173

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, its best strategy would be to

• A) adopt other countries' policies until it reaches the frontier of the rest of the world.
• B) support its own innovative efforts until it reaches the frontier of the rest of the world.
• C) first adopt other countries' policies, and as the country approaches the frontier, shift to supporting its own innovative efforts.
• D) first support its own innovative efforts, and as the country approaches the frontier, shift to adopting other countries' policies .

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Book Value

The value of a company or asset according to its financial statements, calculated as total assets minus intangible assets (like patents) and liabilities.

Trademark

A recognizable sign, design, or expression which identifies products or services of a particular source from those of others.

Fair Value

The cost at which a property is exchanged in a structured deal between parties in the market on the date of evaluation.