Writing in the New York Times on the Technology Boom

question 140

Multiple Choice

Writing in the New York Times on the technology boom of the late 1990s, Michael Lewis argues, "The sad truth, for investors, seems to be that most of the benefits of new technologies are passed right through to consumers free of charge." What does Lewis means by the benefits of new technology being "passed right through to consumers free of charge"?

• A)Firms in perfect competition are price takers. Since they cannot influence price, they cannot dictate who benefits from new technologies, even if the benefits of new technology are being "passed right through to consumers free of charge."
• B)In perfect competition, price equals marginal cost of production. In this sense, consumers receive the new technology "free of charge."
• C)In the long run, price equals the lowest possible average cost of production. In this sense, consumers receive the new technology "free of charge."
• D)In perfect competition, consumers place a value on the good equal to its marginal cost of production and since they are willing to pay the marginal valuation of the good, they are essentially receiving the new technology "free of charge."

Understand terminology related to loans, interest rates, and investments, enabling effective communication of financial concepts.

Apply financial mathematics to real-world scenarios, including savings plans, loan repayments, and investment growth.

Determine the number of payments or the amount of each payment required to satisfy a loan or investment goal.

Understand the basic statistical terms and symbols related to descriptive statistics.

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit, expecting repayment in the future under agreed terms.

Repayment Period

The time frame during which a borrower is required to pay back a loan or debt.

Patent

A form of protection for intellectual property provided to an inventor for a period of 17 years.

Brand Name

A distinctive title or symbol that identifies a product and differentiates it from competitors.