Which of the Following Is True

question 20

Multiple Choice

Which of the following is true?

• A) Automated production processes are generally adopted regardless of whether they reduce costs.
• B) Automated production processes eliminate jobs and, thereby, endanger our future living standards.
• C) Cost-reducing automated production techniques will expand output directly and/or release scarce resources for the expansion of output in other areas.
• D) Use of the most advanced technology will always minimize the cost of a productive activity.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price; high elasticity indicates a significant response, while low elasticity indicates little to no response.

Dairy Farmers

Individuals or businesses involved in the production of milk and possibly other dairy products from animals such as cows or goats.

Milk Production

The process of producing milk, mainly from dairy cows, for human consumption.

Price Elasticity

Quantifying the relationship between price changes and demand response for a product.