Increased Productivity Due to Technology Has

question 83

Multiple Choice

Increased productivity due to technology has

• A) increased corporations' reliance on debt for capital expansion needs.
• B) created larger asset values on the firm's historical balance sheet.
• C) made it cheaper (in terms of interest costs and timing of when money is transferred) for firms to borrow money.
• D) helped to keep corporate costs in check.

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Definitions:

Price Decrease

refers to a reduction in the cost of a good or service, which can lead to an increase in demand due to the law of demand, assuming other factors remain constant.

Unit Elastic

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are deducted.

Unit Elastic

A situation where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.