The Term That Best Describes What Happens When Fewer Workers

question 32

Multiple Choice

The term that best describes what happens when fewer workers are needed to produce the same amount of output with the same amount of capital is

• A)invention.
• B)creative destruction.
• C)labor-saving technological change.
• D)diffusion.
• E)capital-saving technological change.

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Definitions:

Consumer Surplus

The disparity between the total price consumers are ready and able to pay for a service or product and what they end up paying.

International Trade

The exchange of goods and services between countries, which allows for greater variety of consumption and efficiency in production.

Trade Restrictions

Government-imposed limitations on the exchange of goods and services between countries, including tariffs, quotas, and embargoes.

Free Trade

is a policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries.