What Will Be the Result If the Nation Experiences a Technological

question 121

Multiple Choice

What will be the result if the nation experiences a technological breakthrough in the production process?

• A)Business costs will rise, profits will fall, and production will decrease.
• B)Business costs will fall, but profits also will fall and production will remain at the pre-breakthrough level.
• C)Business costs will decline, improving profitability, and production will increase.
• D)Firms will make higher profits but will not increase production.

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Definitions:

Owners' Claims

The financial interest or claims that business owners have in the assets of their company, often calculated as equity.

Assets

Economic resources owned or controlled by a business or individual, expected to produce value or benefit in the future.

Investing Activities

Financial actions related to acquiring or disposing of long-term assets and other investments.

Long-term Borrowing

Debt obligations or loans that are due to be repaid over a period longer than one year, often used for large capital investments.