A Firm Has Successfully Adopted a Positive Technological Change When

question 314

Multiple Choice

A firm has successfully adopted a positive technological change when

• A)it can produce more output using the same inputs.
• B)it produces less pollution in its production process.
• C)it can pay its workers less yet increase its output.
• D)it sees an increase in worker productivity.

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Definitions:

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries and regulate trade balances.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

Absolute Advantage

The ability of a country, individual, or firm to produce more of a good or service with the same amount of resources compared to others.

Trade

The exchange of goods and services between parties, which can be within or across national borders.