A Breakthrough in Technology Is Most Likely To

question 59

Multiple Choice

A breakthrough in technology is most likely to:

• A)reduce the labor needed to produce a given amount of output.
• B)decrease the demand for all goods and services in a country.
• C)increase the cost of production for a firm.
• D)reduce the availability of skilled workers.
• E)lower the standard of living in a country in the long run.

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Definitions:

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Gross Investment

The total amount of money spent on capital goods, or assets that will provide productive capacity for the future, without deducting for depreciation.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Capital Stock

The total value of all physical assets owned by a company that are used in producing goods and services.