Technological Change

question 73

Multiple Choice

Technological change:

• A)raises total factor productivity.
• B)is not as important as infrastructure maintenance.
• C)shifts the aggregate production function downward.
• D)relies on consumption increases at the expense of saving.

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Definitions:

Identical Demand

Refers to a market situation where all consumers have the same desire or need for a particular product or service.

Demand Elasticities

Demand elasticities measure how sensitive the quantity demanded of a good or service is to changes in its price, income levels, or other factors.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to buy at various prices.

Competitive Price-Searcher

A market condition where firms continually search for the best prices to maximize their profits in a competitive environment.