Which of the Following Statements Correctly Describes the Distinction Between

question 255

Multiple Choice

Which of the following statements correctly describes the distinction between technology and technological change?

• A) Technology refers to the processes used by a firm to transform inputs into output of goods and services, while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.
• B) Technology refers to the ability of a firm to increase its maximum output from a given quantity of inputs, and technological change is the process by which the firm achieves this productivity gain.
• C) Technology is product-centered in that it refers to developing new products with limited resources, while technological change is process-centered in that it focuses on developing new production techniques.
• D) Technology involves research and development, while technological change involves the use of more efficient machinery.

---

Definitions:

Discount Rate

The rate at which an individual discounts future cash flows to determine their present value, essential in capital budgeting to assess the profitability of investments.

Capital Budgeting

The procedure a company follows to assess possible significant projects or investments.

Positive Wealth

A situation where the total value of all owned assets exceeds any liabilities, leading to a net positive financial position.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the cost of capital or investment risk.