Suppose That a New Invention Decreases the Marginal Productivity of Labor

question 354

Multiple Choice

Suppose that a new invention decreases the marginal productivity of labor, shifting labor demand to the left. Such an invention would be an example of

• A)labor-saving technology.
• B)labor-augmenting technology.
• C)revenue technology.
• D)supply-shifting technology.

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Definitions:

General Journal

The primary accounting record used for recording all day-to-day financial transactions of a company.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, serving as the main source for financial reporting.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, according to the rules of double-entry accounting.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.