The investment by firms in the creation of products not yet available on the market is referred to as:
A) working capital.
B) creative capital.
C) innovation funds.
D) research and development.
Question 2
Economists use the term externalities to refer to
A) consequences people ignore in their decision making.
B) any cost associated with an action.
C) foreign imports or exports.
D) the behavior in which people actually engage as distinct from their alleged reasons for acting as they do.
E) the outside directors of a corporation as distinct from corporate directors who are also managers.
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Consider a two-period economy with no investment opportunities: first and second period output ...