If Technological Change in an Industry Results, at Given Relative

question 31

Multiple Choice

If technological change in an industry results, at given relative factor prices, in a reduction in the amount of both capital and labor used to produce a given amount of output, but the reduction in labor requirements is greater than the reduction in capital requirements, this technological change would be called __________ in nature.

• A) neutral
• B) labor-saving
• C) capital-saving
• D) both labor-saving and capital-saving

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Definitions:

Prevalent

Widespread in a particular area at a specific time.

Countries

Distinct territorial bodies or political entities recognized as independent nations, often defined by geographical boundaries and governmental sovereignty.

Role

The behavior expected of an individual in a certain position or social context.

Stanford Prison Study

An infamous psychological experiment conducted in 1971 by Philip Zimbardo, examining the effects of perceived power, focusing on the struggle between prisoners and prison officers.