A Productivity Improvement Will Cause

question 64

Multiple Choice

A productivity improvement will cause

• A)a rightward movement along the saving-per-worker curve and an increase in the capital-labor ratio.
• B)an upward shift in the saving-per-worker curve and an increase in the capital-labor ratio.
• C)a downward shift in the saving-per-worker curve and a decrease in the capital-labor ratio.
• D)a leftward movement along the saving-per-worker curve and a decrease in the capital-labor ratio.

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Definitions:

Imitation

The action of using someone or something as a model and duplicating their behaviors, strategies, or products.

Innovation

The process of creating new ideas, products, or methods that bring about significant improvements or change.

Market Share

The share of a market dominated by a specific company or product.

Large Firm

A corporation or business entity that operates on a large scale, typically characterized by a significant number of employees, operations in many locations, and sizable market power.