Technological Advance Improves Allocative Efficiency by

question 167

Multiple Choice

Technological advance improves allocative efficiency by

• A) enhancing monopoly power.
• B) reducing income inequality.
• C) giving society a more-preferred mix of goods and services.
• D) encouraging saving.

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Definitions:

Marginal Resource Cost

The additional cost incurred by a firm for using one more unit of input, like labor or raw materials.

Labor

The effort by workers to produce goods or services, typically measured in terms of hours worked or output produced.

Additional Unit

Refers to the next unit of a product or service to be produced or consumed, considered in analysis of costs and benefits.

Competitive Employer

An employer who maintains a strong position within the labor market by offering compelling wages, benefits, or working conditions to attract and retain employees.