Suppose That the Introduction of Computers Increases the Productivity of Workers

question 157

Multiple Choice

Suppose that the introduction of computers increases the productivity of workers in the developed world. What you would expect wages to do?

• A) Rise mainly in the developed countries.
• B) Rise mainly in the developing countries.
• C) Fall mainly in the developed countries.
• D) Fall mainly in the developing countries.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities to raise revenue or discourage their use.

Revenue

The total income generated by a business or organization from its normal business operations.

Supply Curve

A graphical representation showing the relationship between the quantity of goods suppliers are willing to produce and the price of those goods.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.