Suppose That, Prior to a Technological Change (Innovation) in an Industry

question 16

Multiple Choice

Suppose that, prior to a technological change (innovation) in an industry, at existing Factor prices, it takes 30 units of capital and 100 units of labor to produce 500 units of Good X. (Assume that capital and labor are the only two factors of production.) After the Innovation, it takes 25 units of capital and 50 units of labor to produce 500 units of good X (at the same factor prices as before the innovation) . In this situation, the technological
Change would be classified as a __________ technological change.

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

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Definitions:

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance and must be paid by the patient.

Doctor Visits

Occasions when patients seek professional medical advice, diagnosis, or treatment from physicians in a healthcare setting.

Health Care Rationed

The allocation of healthcare resources in a manner that limits access to certain treatments or services to manage costs and resources effectively.

Rationed

The controlled distribution of scarce resources, goods, or services, typically in contexts of scarcity, war, or economic conditions.