If Technological Change Is "Neutral," Then

question 54

Multiple Choice

If technological change is "neutral," then

• A)output per worker declines,output per unit of capital increases.
• B)"effective labor input" increases,output per unit of capital declines.
• C)output per worker increases,output per unit of capital is constant.
• D)Both output per worker and output per unit of capital change.

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Definitions:

Venture Capitalism

The practice of investing in early-stage companies with strong growth potential in exchange for equity stakes.

Equity Stake

An ownership interest in a company through the holding of its stock, indicating a financial share in the entity's assets and profits.

Entrepreneurial Capitalism

An economic system where individuals are encouraged to start and grow their own businesses, often leading to innovation and economic growth.

Sole Proprietorship

A form of business ownership where a single individual owns and runs the business, bearing full responsibility for its assets and liabilities.