Technological Change

question 20

Multiple Choice

Technological change

• A) is the equivalent of a decrease in the price of capital.
• B) is the equivalent of an increase in international trade.
• C) will always decrease the demand for less-educated workers.
• D) will always decrease the demand for well-educated workers.

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Definitions:

Input Prices

Refers to the costs associated with the goods and services used in the production of another product, affecting the overall cost of production.

Average Variable Costs

The total variable costs divided by the number of units produced, indicating the average cost of producing each unit excluding fixed costs.

Short-Run Losses

Financial deficits that a firm experiences in the period where at least one factor of production is fixed, leading to an inability to cover total costs.

Operate

The act of functioning or running a business or machine, carrying out actions necessary for performance.