Assume There Is an Improvement in Technology That Increases the Marginal

question 45

Multiple Choice

Assume there is an improvement in technology that increases the marginal product of each unit of labor.This would have the effect of:

• A)reducing the average total cost, average variable cost, and marginal cost of production.
• B)increasing the average total cost, average variable cost, and marginal cost of production.
• C)reducing the average variable cost and marginal cost of production, but average total cost would be unchanged.
• D)reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.

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Definitions:

Financial Accounts Surplus

A situation where the inflows of foreign investment into a country exceed the outflows of domestic investment abroad, reflecting a net increase in ownership of foreign assets.

Depreciates

The process by which an asset loses value over time, often due to wear and tear or market conditions.

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another.

Trade Deficit

A situation where a country's imports exceed its exports, resulting in a negative balance of trade.