ECON 213 Quiz 1 Quiz Sample Chapter 01 Introduction 100% Satisfaction Guaranteed!

Liberty University

Quiz Sample

Chapter 01 Introduction

True/False

 1. Innovation and new technology have led to longer product life cycles as better quality products are being produced.

2. Technological innovation can have a positive impact on our quality of life through improved goods and services.

3. Firms that charge headlong into new product development usually have short development cycles.

4. GDP does relate very directly to the amount of goods consumers can purchase.

5. According to the concept of the innovation funnel, one new idea is usually responsible for several new products.

Multiple Choice

6. After Yahoo! was introduced as an easy way to search the World Wide Web, it was followed by other search engines, some of which had improved or faster ways to search the web. This is an example of how one innovative idea can

a. ruin the business of someone else.

b. slow down obsolescence.

c. stimulate more innovations and create a new market.

d. never be truly copied.

7. As companies adopt new technologies and increase their pace of innovation, the results may be

a. an industry wide shift to longer production cycles.

b. rapid product introductions.

c. less market segmentation.

d. slower product obsolescence.

8. In a series of studies of economic growth conducted at the National Bureau of Economic Research, economists showed that the historic rate of economic growth in GDP could not be accounted for entirely by growth in labor and capital inputs. Consensus emerged later that _____ helped explain this gap.

a. technological change

b. measurement error

c. inaccurate price deflation

d. labor improvement

9. Technology in its purest form is

a. faith that things will get better.

b. knowledge to solve our problems and pursue our goals.

c. always derived from physics.

d. pure guesswork.

10. A firm’s innovation projects should satisfy all of the following, except

a. align with its resources.

b. leverage its core competencies.

c. help achieve its strategic intent.

d. be able to produce immediate returns.

Essay

11. Why is it important that a company have a well-defined process for strategically managing its new product development process?

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12. Explain how an understanding of the innovation funnel might influence a company’s view of research and development?