The Method of Constructing a Measure of Technological Progress Relies

question 16

Multiple Choice

The method of constructing a measure of technological progress relies on which of the following assumptions?

• A) The investment rate does not change.
• B) Population growth is zero.
• C) Each factor of production is paid its marginal product.
• D) Population growth does not change.
• E) The saving rate does not change.

---

Definitions:

Industrial Revolution

A period of major industrial growth and technological innovation that began in the 18th century, significantly transforming societies and economies.

Diesel Engine

A type of internal combustion engine that runs on diesel fuel, known for its efficiency and used in vehicles, machinery, and generators.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, pivotal in the development and spread of the Industrial Revolution.

Steel Plow

An agricultural tool made of steel, significant for its durability and efficacy in breaking tough soil, revolutionizing farming practices in the 19th century.