An Economy That Uses New Technology

question 332

Multiple Choice

An economy that uses new technology .

• A) has its PPF shift inward because more unemployment is created
• B) does not incur an opportunity cost because everyone can use new technology
• C) experiences economic growth but incurs an opportunity cost
• D) moves along its PPF and incurs an opportunity cost

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Definitions:

Peak Efficiency

The state in which an entity or system is operating at its maximum potential and efficiency, without waste of resources.

Average Total Cost

This refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Marginal Cost

The rise in expense incurred from manufacturing an extra unit of a product or service.

Shutdown Point

The level of operations at which a company does not benefit from continuing operations or producing any output due to high variable costs.