If Technology Advances

question 206

Multiple Choice

If technology advances,:

• A) more output can be obtained from the same inputs.
• B) more inputs are needed to produce the same output.
• C) less output can be obtained from the same inputs.
• D) less output can be produced even with more inputs.

---

Definitions:

Default Risk

The risk that a borrower will not make the required payments on their debt obligations, leading to a default.

Semiannual Coupon

Interest payments made to bond investors every six months as part of the bond's fixed-income return.

Bond Rating

An evaluation provided by a credit rating agency regarding the creditworthiness of a bond issuer, affecting the interest rates and investment appeal of its bonds.

Secured Debt

A debt that is backed by collateral, providing the lender with assurance that the loan can be recovered if defaulted.