If a Nation Has a Higher Level of Technology Than

question 93

Multiple Choice

If a nation has a higher level of technology than another nation it can produce:

• A) more outputs with the same level of physical capital.
• B) less with the same amount of physical capital.
• C) more with no use of human capital.
• D) the same output with the same level of inputs.

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Definitions:

User Cost

The cost of using a durable good or asset, which includes depreciation, interest lost on funds used to buy the asset, and maintenance costs.

Nonrenewable Resources

Natural resources that cannot be replenished within a human lifetime, such as fossil fuels or minerals.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Extracting

The process of obtaining raw materials from the natural environment for use in the production of goods or services.