#1
What does the term 'technological unemployment' refer to?
Unemployment resulting from technological advancements
ExplanationIt refers to job loss due to automation or technological progress.
#2
Which sector is often considered the primary driver of innovation in modern economies?
Information technology
ExplanationIT sector is pivotal due to its rapid evolution and transformative impact on various industries.
#3
Which economic concept refers to the maximum amount of a good that consumers are willing and able to purchase at a given price?
Demand
ExplanationDemand represents consumer desire for a product at various prices.
#4
Which type of innovation involves making incremental improvements to existing products or processes?
Sustaining innovation
ExplanationSustaining innovation enhances existing products or processes, often focusing on efficiency, cost reduction, or quality improvement.
#5
Which economic concept refers to the total value of all goods and services produced in a country within a given time period?
Gross Domestic Product (GDP)
ExplanationGDP measures a country's economic output and is a key indicator of its economic health.
#6
In economic terms, what does the acronym 'R&D' stand for?
Research and Development
ExplanationR&D refers to the activities companies undertake to innovate and develop new products or processes.
#7
Which economist coined the term 'creative destruction' to describe the process of innovation?
Joseph Schumpeter
ExplanationSchumpeter coined the term to describe how innovation replaces old industries with new ones.
#8
What economic theory suggests that technological advancements lead to long-term economic growth?
Endogenous growth theory
ExplanationThis theory posits that growth is generated from within the economy through technological progress.
#9
What does the 'Solow Residual' measure in economic terms?
Productivity growth not explained by inputs
ExplanationIt captures the portion of economic growth not attributable to increases in inputs like labor or capital.
#10
What term describes the situation where a single firm or group of firms dominates a market?
Monopoly
ExplanationA monopoly occurs when a company controls the supply of a good or service, giving it significant market power.
#11
In the context of innovation, what does the 'S-curve' represent?
The trajectory of innovation over time
ExplanationIt illustrates the adoption rate of new technologies over time, typically showing initial slow growth, rapid adoption, and eventual saturation.
#12
What is the term used to describe the practice of pricing a product below its production cost to drive competitors out of the market?
Predatory pricing
ExplanationPredatory pricing involves selling goods below cost to eliminate competitors and later raise prices.
#13
Which of the following is NOT a characteristic of disruptive innovation?
Sustains innovation within existing markets
ExplanationDisruptive innovation typically creates new markets and displaces established ones.
#14
Which of the following is NOT a characteristic of a knowledge-based economy?
Emphasis on manufacturing industries
ExplanationKnowledge-based economies focus on information, technology, and innovation rather than traditional manufacturing.
#15
Which of the following is NOT a characteristic of a knowledge spillover?
It exclusively benefits the firm that originally developed the knowledge
ExplanationKnowledge spillovers involve the unintentional transmission of ideas or knowledge, often benefiting multiple entities beyond the original innovator.
#16
According to Schumpeter, what role do entrepreneurs play in the process of creative destruction?
They facilitate the entry of new firms and technologies
ExplanationEntrepreneurs disrupt established industries by introducing new technologies, products, or business models.
#17
Which of the following is NOT a factor that contributes to technological progress?
Government regulations
ExplanationGovernment regulations can sometimes hinder technological progress by imposing restrictions or barriers on innovation.
#18
Which economic theory suggests that technological progress can lead to short-term unemployment but long-term economic growth?
Creative destruction theory
ExplanationThis theory proposes that while innovation may initially cause job displacement, it ultimately drives economic growth and creates new opportunities.