Question : 35) A patent grants an inventor exclusive rights to a : 1388406

35) A patent grants an inventor exclusive rights to a product for how long?

A) 14 years

B) 17 years

C) 20 years

D) the lifetime of the product

36) Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?

A) because firms must disclose information about the product or process being patented in a patent application

B) because trade secrets are never divulged

C) because a patent only gives the inventor exclusive rights to a product or process for 5 years

D) because trade secrets provide the same exclusive legal rights to a product as a patent does

37) Which of the following government policies would most likely result in an increase in economic growth?

A) a decrease in the life of a patent from 20 years to 15 years

B) a decrease in the interest rate at which the government provides student loans

C) a decrease in government spending on grants issued through the National Institutes of Health

D) decreased copyright protection on music and movies

38) According to Joseph Schumpeter, economic growth is achieved through

A) focusing only on making old products better rather than inventing new ones.

B) centralizing economic production.

C) a process termed “creative destruction.”

D) removing the entrepreneur from the production function.

39) Creative destruction means that

A) firms develop new products that replace old products in the economy, thereby encouraging economic growth.

B) economic growth can only be sustained if capital depreciates rapidly.

C) knowledge capital can be created through a system of government subsidies for education and research and development.

D) research and development should only be financed if research and development is incremental (a result of making small changes to existing products).

40) An economic growth model

A) explains changes in nominal GDP per capita in the long run.

B) explains changes in real GDP per capita in the long run.

C) explains changes in nominal GDP per capita in the short run.

D) explains changes in real GDP per capita in the short run.

41) Which factors explain labor productivity?

A) technological change; the quantity of labor per hour worked

B) diminishing returns; the quantity of labor per hour worked

C) diminishing returns; the quantity of capital per hour worked

D) technological change; the quantity of capital per hour worked

42) The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.

A) labor; real GDP; technology

B) capital; real GDP; technology

C) labor; capital; real GDP

D) capital; labor; real GDP

Figure 11-3

43) Refer to Figure 11-3. Technological change is shown in the figure above by the movement from

A) B to C.

B) B to D.

C) B to E.

D) B to A.

44) Refer to Figure 11-3. Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

A) an improvement in technology

B) a decrease in capital per hour worked

C) an increase in capital per hour worked

D) a technological regression