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:

Chemical Weathering

The breakdown of rocks and minerals through chemical reactions with atmospheric agents such as oxygen, water, and acids, leading to the formation of new minerals and soil.

Physical Weathering

The breakdown of rocks and minerals into smaller pieces by physical forces without chemical alteration.

Soil Formation

The process by which rocks break down and decompose over time to form soil, influenced by factors like climate, organisms, topography, and time.

Stalagmite

A conical, cylindrical, or moundlike cave formation that is developed upward from the floor of a cave and is composed mostly of calcium carbonate.