Other Things the Same, Continued Increases in Technology Lead to

question 456

Multiple Choice

Other things the same, continued increases in technology lead to

• A)continued increases in the price level and real GDP.
• B)continued increases in the price level but not continued increases in real GDP.
• C)continued increases in real GDP but not continued increases in the price level.
• D)None of the above are correct.

---

Definitions:

Transfer Pricing Formula

A method used to determine the price at which goods and services are sold between divisions within the same company.

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or volume of output produced.

Divisional Managers

Managers who are responsible for overseeing the operations, profitability, and strategic planning of a specific division within a company.

Transfer Price

The price at which goods and services are traded between departments or subsidiaries within the same company, used for accounting and tax purposes.