What share of market value do intangible assets represent in the United States today, compared with 1973?

What share of market value do intangible assets represent in the United States today, compared with 1973?

• A. About 5 percent.
• B. Up to 90 percent.
• C. About 50 percent.
• D. Less than 20 percent.

Answer: (B)

The main idea is that the value of many U.S. firms has shifted from physical assets to intangible assets, so the market value today is largely driven by things like intellectual property, brands, software, data, and human capital. The best choice reflects this reality by stating that intangible assets can account for up to 90% of market value, which captures how dominant these assets have become. In the 1970s, the share was much smaller as tangible assets still played a larger role, so the drastic difference over time explains why up to 90% is the most accurate description. The other options understate the current dominance of intangibles (5%, about 50%, or less than 20%) and don’t reflect the modern economy where intangibles typically comprise a large portion of value.

The main idea is that the value of many U.S. firms has shifted from physical assets to intangible assets, so the market value today is largely driven by things like intellectual property, brands, software, data, and human capital. The best choice reflects this reality by stating that intangible assets can account for up to 90% of market value, which captures how dominant these assets have become. In the 1970s, the share was much smaller as tangible assets still played a larger role, so the drastic difference over time explains why up to 90% is the most accurate description. The other options understate the current dominance of intangibles (5%, about 50%, or less than 20%) and don’t reflect the modern economy where intangibles typically comprise a large portion of value.