Suppose an Economy Experiences an Increase in Technological Progress

question 17

Multiple Choice

Suppose an economy experiences an increase in technological progress.This increase in technological progress will

• A)allow more output to be produced with the same number of workers.
• B)allow the same amount of output to be produced with fewer workers.
• C)lead to changes in the types of goods produced.
• D)all of the above
• E) none of the above

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Definitions:

P/E Ratio

The price-to-earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share.

Dividend Plowback Ratio

The portion of a company's earnings that is not distributed as dividends but is reinvested in the business, also known as the retention rate.

Earnings Growth

The rate at which a company's earnings increase over a certain period, indicating financial health and profit potential.

P/E

Price-to-Earnings ratio, a valuation metric that compares a company's market share price to its per-share earnings, used to assess if a stock is over or under-valued.