In terms of technological progress, economists interpret this as meaning an economy operates more efficiently by producing more output without using any more inputs
Indicate whether the statement is true or false
TRUE
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If demand is inelastic, an increase in the price will
A) decrease total revenue. B) increase total revenue. C) not change total revenue. D) increase the quantity demanded.
When we try to measure real GDP and the price level, if we underestimate the growth in real GDP, we will
A) always underestimate the rate of inflation. B) sometimes underestimate the rate of inflation. C) always overestimate the rate of inflation. D) sometimes overestimate the rate of inflation.
When demand is unit elastic, a change in price will cause
A) a change in total revenue in the same direction. B) a change in total revenue in the opposite direction. C) no change in total revenue. D) a change in total revenue in either direction depending on whether the price is increasing or decreasing.
Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a
A) vertical line where Q = 10. B) vertical line where Q = 100. C) vertical line where Q = 1000. D) horizontal line where Q = 1000.