Technological Changes That Reduce Transaction Costs and Expand the Availability

question 117

Multiple Choice

Technological changes that reduce transaction costs and expand the availability of low-cost access to information

• A) increase GDP, but they generally fail to improve the welfare of people.
• B) improve the well-being of people, but they often exert only a small impact on GDP, and sometimes they actually lead to a GDP reduction.
• C) increase the consumer price index, but not the GDP deflator.
• D) increase the GDP deflator, but not the consumer price index.

---

Definitions:

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after all taxes and necessities have been paid.

Luxury Items

High-end products or services that are not essential but are desired for their quality, status, and aesthetic appeal, often associated with a higher price.

Voyage

A long journey involving travel, especially by sea or in space.

Applied Science

A discipline that applies existing scientific knowledge to develop more practical applications, including technology or inventions, within fields such as engineering and medicine.