Do the Recent High Technological Advances and Productivity Rates Mean

question 121

Multiple Choice

Do the recent high technological advances and productivity rates mean that the business cycle is dead?

• A)Yes, the faster rate of productivity growth will eliminate recession.
• B)Yes, the changes in technology have a compound, positive effect on the economy.
• C)No, the trend line for economic growth is just steeper, but there can still be economic downturns.
• D)No, the fact there are many start-up firms means that there will be more bankruptcies that will hurt the economy.

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Definitions:

Common Stock

Equity securities representing ownership shares in a corporation, providing voting rights and a portion of profits through dividends.

Corporation

A legal entity separate from its owners, offering limited liability protection, the ability to raise capital through the sale of shares, and perpetuity.

Market Value

The market rate for buying or selling an asset or service currently.

Ownership

The state or fact of exclusive rights and control over property, which can be tangible or intangible.