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As Other Countries Grow Wealthier, the Incentive to Undertake Research

Question 212

Multiple Choice

As other countries grow wealthier, the incentive to undertake research and development projects:


A) increases, since the potential for profits rises.
B) decreases, since competition drives profits lower.
C) decreases, since the marginal returns to R&D fall when more countries are wealthier.
D) increases, since there is more government subsidization when countries are wealthier.

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