The Traditional View of Technological Advance Was That It

question 72

Multiple Choice

The traditional view of technological advance was that it

• A) was a random external force to which the economy adjusted.
• B) arose largely from advances in military-related research.
• C) was the result of capitalism and the rivalry among firms.
• D) arose from international trade and the sharing of ideas among nations.

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Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, there are no barriers to entry or exit, buyers have perfect information, and firms are price takers.

Long Run

A period in economics where all factors of production and costs are variable, allowing for full industry adjustment to changes.

Perfect Competitor

A theoretical market structure where many firms offer a standardized product, there is free entry and exit, and all buyers and sellers have perfect information, leading to price being equal to marginal cost.

Long Run

A period in which all inputs can be adjusted, allowing firms to change their production capacity and industries to enter or exit markets.