Chapter1 Introduction ALL ANSWERS SOLVED 100% CORRECT FALL-2021/2022 SOLUTION GUARANTEED GRADE A+

1. The globalization of markets and the importance of innovation are independent of one another. Answer: False Difficulty: Easy Page: 1 2. Flexible manufacturing technologies have increased the importance of production economies of scale. Answer: False Difficulty: Easy Page: 1 3. Innovation and new technology have led to longer product life cycles as better quality products are being produced. Answer: False Difficulty: Moderate Page: 2 4.. The increased pace of innovation has only had a negligible effect on market segmentation and product obsolescence. Answer: False Difficulty: Easy Page: 2 5. Slow innovation results in diminishing margins and product obsolescence. Answer: True Difficulty: Moderate Page: 2 6. Technological innovation can have a positive impact on our quality of life through improved goods and services. Answer: True Difficulty: Moderate Page: 4 7. Technology’s effects on society are always positive. Answer: False Difficulty: Easy Page: 4 8. Technology in its purest form is not knowledge, but rather faith that things will get better. Answer: False Difficulty: Easy Page: 4 9. Firms that charge headlong into new product development usually have short development cycles. Answer: False Difficulty: Moderate Page: 4 10. Studies have revealed that innovation is a freewheeling process that is unconstrained by rules and plans. Answer: False Difficulty: Easy Page: 4 11. The majority of effort and money invested in technological innovation comes from industrial firms. Answer: True Difficulty: Moderate Page: 4 12. GDP does relate very directly to the amount of goods consumers can purchase. Answer: True Difficulty: Easy Page: 4 13. Practically all innovative ideas become successful products. Answer: False Difficulty: Easy Page: 5 14. If an idea can be shown to be technologically feasible, it is guaranteed to be commercially successful. Answer: False Difficulty: Easy Page: 5 15. According to the concept of the innovation funnel, one new idea is usually responsible for several new products. Answer: False Difficulty: Moderate Page: 5 Multiple Choice 16. As a result of the rapid pace of innovation, the time between a product’s introduction and its withdrawal from the market a. has become shorter. b. has become more predictable. c. has become longer. d. has not changed at all. Answer: a Difficulty: Easy Page: 2 17. While rapid innovation often benefits society, it often makes success for companies a. more complicated as they strive to keep up with the latest innovations. b. profitable as long as they do not innovate themselves, but rather use innovations of others to their advantage. c. easier since innovation always makes things simpler. d. less likely because customers will not be willing to pay as much for goods and services. Answer: a Difficulty: Moderate Page: 2 18. 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. Answer: c Difficulty: Moderate Page: 2 19. The relationship between speed of innovation and product obsolescence is a. direct (as innovation speed increases, products become obsolete more quickly). b. inverse (as innovation speed increases, products become obsolete more slowly). c. indirect (there is an effect, but it cannot be directly determined). d. nonexistent (there is no relationship at all). Answer: a Difficulty: Hard Page: 2 20. Most studies suggest that a. technological innovation helps to increase a country’s gross domestic product. b. technological innovation typically decreases a country’s gross domestic product. c. technological innovation has no impact on a country’s gross domestic product. d. a country’s gross domestic product determines its rate of technological innovation. Answer: a Difficulty: Easy Page: 2 21. 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. Answer: b Difficulty: Moderate Page: 2 22. The Solow Residual refers to a. the increased amount of output achievable from a given quantity of labor and capital due to technological innovation. b. the less developed nations of the world being left behind due to their slower development of technology. c. obsolete products left in the market due to the accelerated product life cycle. d. the reduction in the amount of inventory needed by manufacturing firms due to technological improvements in inventory management. Answer: a Difficulty: Moderate Page: 2 23. The of an economy is its total a