Technological Progress Often Results In

question 105

Multiple Choice

Technological progress often results in:

• A) a fall in investment as firms can produce more output for fewer inputs, including capital.
• B) a rise in investment as firms try to take advantage of these improvements.
• C) no change in investment, as a rise in some investment is offset by decreases in other areas of investment.
• D) a rise in investment only if it is accompanied by a fall in the interest rate.

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered cash equivalents.

Financing Activities

Transactions related to raising capital or repaying investors, reflecting how a company funds its operations and growth.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread among shareholders.

Liabilities

Economic obligations or debts that a business owes to others, such as loans, accounts payable, and mortgages.