Technological Progress Allows Workers to Produce More

question 28

Multiple Choice

Technological progress allows workers to produce more:

• A) because it increases the amount of physical capital available.
• B) because it increases the amount of human capital available.
• C) even when the amount of physical capital and human capital do not change.
• D) only if the amount of physical capital grows at the same rate.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage.

Expansionary Monetary Policy

A form of monetary policy where the central bank increases the money supply and decreases interest rates to stimulate economic growth.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of international trade on an economy’s spending balance.

Demarcation

The act of setting boundaries or distinguishing differences between things, often used to establish sectors within fields or professions.