When a Firm Invests in New Technology, the _______ That

question 21

Multiple Choice

When a firm invests in new technology, the _______ that the firm receives are _______.

• A) private benefits; only a portion of the overall social benefits
• B) social benefits; only a portion of the overall private benefits
• C) private benefits; about three-quarters of the economic benefits
• D) social benefits; about one-third of the overall private benefits

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Definitions:

Theory of Exploitation

A concept in Marxist economics that posits that capitalists extract surplus value from workers' labor, paying them less than the actual worth of their work.

Neocolonialism

The economic and political strategies by which powerful nations indirectly maintain or extend their influence over other countries, often through economic pressures or cultural dominance.

Capital-Using Technology

An improvement in technology that requires the use of a greater amount of capital to produce a specific quantity of a product.

Capital-Saving Technology

An improvement in technology that permits a greater quantity of a product to be produced with a specific amount of capital (or permits the same amount of the product to be produced with a smaller amount of capital).