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.

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Definitions:

Accounting Equation

The fundamental equation that represents the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Owner's Equity

The residual interest in the assets of a company after deducting its liabilities; also known as shareholders' equity.

Liabilities

Financial obligations owed by a business to others, such as loans, accounts payable, and mortgages.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its overall value.