An Improvement in Technology That Allows Workers to Process Twice

question 57

Multiple Choice

An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause

• A) more labor to be employed because its marginal revenue product has fallen.
• B) an increase in insurance premiums.
• C) fewer workers to be employed because their marginal revenue product has decreased.
• D) more workers to be employed because their marginal revenue product has increased.
• E) fewer workers to be employed because their marginal revenue product has increased.

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Definitions:

Economic Role

The function or position an entity (like an individual, company, or government) plays within an economy, influencing its structure and development.

Local Finance

Relates to the funding and financial management of local governments, including revenue generation, budgeting, and expenditure on public services at a local level.

Property Taxes

Taxes imposed on property owners by local governments, calculated as a percentage of the property's value.

Sales and Excise Taxes

Taxes imposed on the sale of specific goods (excise) and on a broad range of products at the point of sale (sales), used by governments to raise revenue, potentially influence consumer behavior, and fund public goods and services.