Technological Innovations and the Increasing Mechanization of Industry

question 45

Multiple Choice

Technological innovations and the increasing mechanization of industry

• A) have led to long-run aggregate unemployment that is difficult to eradicate.
• B) have led to lower wages for skilled workers.
• C) mean higher prices for consumers.
• D) ultimately create new jobs that replace old jobs.

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Definitions:

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life.

Relevant Costs

All costs that vary with the consequence of a decision.

Irrelevant Costs

Costs that will not be affected by a decision and thus should not influence the decision-making process.

Touch Screen

An electronic visual display that can detect the presence and location of a touch within the display area, used for interaction.