With respect to innovation,which of the following statements is true?
A)Government policy cannot influence the rate of innovation.
B)Innovation is exogenous to the economic system.
C)The utilization rate of existing plant and equipment and its durability are independent of the pace of innovation.
D)The principal incentive for innovation does not appear to be related to profits.
E)Innovation is often endogenous to the economic system.

Question

Quizplus · Accepted Answer

Innovation is often endogenous to the economic system, meaning that it is influenced by internal factors such as research and development, education, and the availability of resources. External factors such as government policies, market demand, and competition can also influence the rate of innovation. Therefore, innovation is not exogenous to the economic system, and government policy can have an impact on innovation. The utilization rate of plant and equipment as well as profitability can also influence the rate of innovation, making option C and D false.

With Respect to Innovation,which of the Following Statements Is True