Technological Progress Often Results In

question 105

Multiple Choice

Technological progress often results in:

• A) a fall in investment as firms can produce more output for fewer inputs, including capital.
• B) a rise in investment as firms try to take advantage of these improvements.
• C) no change in investment, as a rise in some investment is offset by decreases in other areas of investment.
• D) a rise in investment only if it is accompanied by a fall in the interest rate.

---

Definitions:

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Franchise

A type of license that grants a franchisee access to a franchisor's proprietary knowledge, processes, and trademarks, to allow the party to sell a product or provide a service under the business's name.

Reverse Stock Split

When the number of outstanding shares is reduced and the market price per share is increased; as the price per share increases, the investor perceives that the stock is worth more.

Outstanding Shares

The total number of all shares issued to investors by a corporation.