The Adoption of Modern Technologies and Business Methods Have the Possibility

question 101

Multiple Choice

The adoption of modern technologies and business methods have the possibility to improve economic performance in a nation with low per capita income and low growth, but only if

• A) its natural resources are sufficient.
• B) its workers become educated rapidly enough.
• C) it improves its institutions, making them sound enough to attract capital and entrepreneurial activity.
• D) its government has enough skilled planners to properly deploy new capital.

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Definitions:

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for competition based on quality, price, and branding.

Long-Run Equilibrium

A state in economics where all factors of production are fully adjusted to market conditions, leading to a steady state where no incentives exist for further adjustment.

Demand Curve

A graphical representation that displays the relationship between the price of a good or service and the quantity demanded by consumers over a period of time.

Average Total Cost

The sum of all production costs (both fixed and variable) divided by the amount of product made.