In the Long Run, Technological Progress

question 322

Multiple Choice

In the long run, technological progress

• A)and increases in the money supply both make the price level rise.
• B)and increases in the money supply both make the price level fall.
• C)makes the price level rise, while increases in the money supply make prices fall.
• D)makes the price level fall, while increases in the money supply make prices rise.

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Definitions:

Individual Transferable Quotas (ITQs)

Limits (quotas) set by a government or a fisheries commission on the total number or total weight of a species that an individual fisher can harvest during some particular time period; fishers can sell (transfer) the right to use all or part of their respective individual quotas to other fishers.

Tragedy of the Commons

A situation in which individuals act according to their own self-interest regarding a shared resource, depleting or spoiling that resource through their collective action.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Low Birthrates

A situation in a population where the number of births is significantly lower than the global average or the replacement level.