Question

4)) An example of industrial clustering is a Hollywood stock brokerages b Broadway casinos c Boston...

4)) An example of industrial clustering is

a

Hollywood stock brokerages

b

Broadway casinos

c

Boston theme parks

d

Silicon Valley software makers

e

Wall Street theaters

5)) Basic research

a

usually has a larger immediate payoff than applied research

b

is more practical than applied research

c

is a search for general knowledge without a specific product or procedure in mind

d

is research done by a firm to market a good

e

is research done by a firm during production of a good

13)) Since 1996,

a

U.S. productivity growth skyrocketed as more computers were installed

b

the computer sector has grown faster than the U.S. economy as a whole

c

spending on computers has been approximately constant as a fraction of total U.S. investment spending

d

the contribution of computers to U.S. productivity growth has been negative

e

computing technology did not improve enough to have a measurable impact on U.S. productivity

18)) What is the definition of productivity?

a

output plus quantity of input

b

output minus quantity of input

c

quantity of input divided by output

d

output divided by quantity of input

e

output times quantity of input

Homework Answers

Answer #1

4) The answer is (d) Silicon valley software makers. Industrial clustering when simial firms cluster in same geographical area and share a customer base or technical know-how. This is exactly what happens with the Silicon valley firms.

All other options are incorrect as they do not represent industrial clustering.

Q5) The answer is (c). Basic research is done to improve understanding fo the scientific method and it may often result in the enhanced general understanding without a very specific target. All other options are incorrect as they misuse the terms basic and applied research.

Q7) The answer is (d)

Productivity is the scale at which inputs contribute to the output and can be calculated by dividing the total output by the inputs. All other definitions of productivity are wrong.

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