MGT 100 - Exam 2 UPDATED ACTUAL
Exam Questions and CORRECT Answers
intellectual property - CORRECT ANSWER - Any intangible asset that consists of human
knowledge and ideas
intellectual vs physical property - CORRECT ANSWER - Need to share to evaluate, hard
to price, and raw idea can be appropriated
Examples of intellectual property - CORRECT ANSWER - Patents, Copyrights,
Trademarks, and Trade Secrets
patents - CORRECT ANSWER - exclusive rights to make or sell inventions
copyrights - CORRECT ANSWER - the exclusive legal rights of authors, composers,
playwrights, artists, and publishers to publish and disperse their work as they see fit
trademark - CORRECT ANSWER - A brand that has exclusive legal protection for both
its brand name and its design
trade secret - CORRECT ANSWER - A formula, device, idea, process, or other
information used in a business that gives the owner a competitive advantage in the marketplace.
Origins of intellectual property (US) - CORRECT ANSWER - Found in the constitution
(Art 1, See 8), first patent made in 1790
Pro-IP stance - CORRECT ANSWER - provides incentive to invest in innovation,
stimulates innovation, a "necessary evil"
, Con-IP stance - CORRECT ANSWER - Hayek: legal institutions that attempt to foster a
competitive system effectively will not work
Stiglitz: important ideas that have emerged have never been protected by patents and shouldn't
be
Says the human curiosity can drive innovation so IP is not necessary to be an incentive
What are some incentives by the government to encourage firm-level innovations? - CORRECT
ANSWER - Monopoly control, taxes, grants & subsidies, etc.
Ways to measure GDP (3) - CORRECT ANSWER - Expenditure, Income, Production
Expenditure approach to GDP - CORRECT ANSWER - C+I+G+(X-M)
Income approach to GDP - CORRECT ANSWER - A method of computing GDP that
measures the income-wages, rents, interest, and profits-received by all factors of production in
producing final goods and services.
Production approach to GDP - CORRECT ANSWER - market value of final goods and
services
The Great Divergence - CORRECT ANSWER - The increase in dispersion of incomes
throughout the world associated with the fact that modern economic growth has taken hold in
some countries but not in others.
Real vs. Nominal GDP - CORRECT ANSWER - real GDP is GDP adjusted for inflation
and nominal GDP is measured in current dollars
Drawbacks to GDP as Measure of Well-Being - CORRECT ANSWER - - fails to provide
info about median citizen
Exam Questions and CORRECT Answers
intellectual property - CORRECT ANSWER - Any intangible asset that consists of human
knowledge and ideas
intellectual vs physical property - CORRECT ANSWER - Need to share to evaluate, hard
to price, and raw idea can be appropriated
Examples of intellectual property - CORRECT ANSWER - Patents, Copyrights,
Trademarks, and Trade Secrets
patents - CORRECT ANSWER - exclusive rights to make or sell inventions
copyrights - CORRECT ANSWER - the exclusive legal rights of authors, composers,
playwrights, artists, and publishers to publish and disperse their work as they see fit
trademark - CORRECT ANSWER - A brand that has exclusive legal protection for both
its brand name and its design
trade secret - CORRECT ANSWER - A formula, device, idea, process, or other
information used in a business that gives the owner a competitive advantage in the marketplace.
Origins of intellectual property (US) - CORRECT ANSWER - Found in the constitution
(Art 1, See 8), first patent made in 1790
Pro-IP stance - CORRECT ANSWER - provides incentive to invest in innovation,
stimulates innovation, a "necessary evil"
, Con-IP stance - CORRECT ANSWER - Hayek: legal institutions that attempt to foster a
competitive system effectively will not work
Stiglitz: important ideas that have emerged have never been protected by patents and shouldn't
be
Says the human curiosity can drive innovation so IP is not necessary to be an incentive
What are some incentives by the government to encourage firm-level innovations? - CORRECT
ANSWER - Monopoly control, taxes, grants & subsidies, etc.
Ways to measure GDP (3) - CORRECT ANSWER - Expenditure, Income, Production
Expenditure approach to GDP - CORRECT ANSWER - C+I+G+(X-M)
Income approach to GDP - CORRECT ANSWER - A method of computing GDP that
measures the income-wages, rents, interest, and profits-received by all factors of production in
producing final goods and services.
Production approach to GDP - CORRECT ANSWER - market value of final goods and
services
The Great Divergence - CORRECT ANSWER - The increase in dispersion of incomes
throughout the world associated with the fact that modern economic growth has taken hold in
some countries but not in others.
Real vs. Nominal GDP - CORRECT ANSWER - real GDP is GDP adjusted for inflation
and nominal GDP is measured in current dollars
Drawbacks to GDP as Measure of Well-Being - CORRECT ANSWER - - fails to provide
info about median citizen
