Recall Application 4, "Growth Accounting and Information Technology," to Answer

question 150

Multiple Choice

Recall Application 4, "Growth Accounting and Information Technology," to answer the following questions:
-According to the application, the increased productivity due to higher investment in computer technology is

• A) temporary.
• B) permanent.
• C) negligible.
• D) nonexistent.

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Definitions:

Production Possibilities

A graph or curve depicting the maximum output combinations of two goods that can be produced with available resources and technology.

Circular-Flow Diagram

A diagram that represents the transactions in an economy by two kinds of flows around a circle: flows of physical things such as goods or labor in one direction and flows of money to pay for these physical things in the opposite direction.

Output

In economics, output refers to the total amount of goods or services produced by a firm or country.

Factor of Production

An input used in the production of goods and services, such as land, labor, capital, and entrepreneurship.