Give a definition of technological advance. What role does time play in the definition according to economists?
What will be an ideal response?
Technological advance involves the development of new and improved products and new and improved ways of producing and distributing them. It is a three-step process of invention, innovation, and diffusion. Technological advance occurs over the very long run, a period of time in which technology can change and in which firms can introduce entirely new products into the market.
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When it comes to active policy making most economists agree that
A) active policy making should be used over passive policy making. B) it is unlikely that active policy making will have any long term effects on the economy. C) it is likely that active policy making will have long term effects on the economy. D) it will lead to long term shocks in the system.
Given the evidence presented in the Applied Perspective on China's population policy, it appears that by decreasing the rate of population growth, China
a. is likely to experience slower economic growth in the future b. has been able to increase the size of its agricultural sector relative to the industrialsector c. has become one of the major grain exporters in the world d. will lag behind India in population in the coming years e. has been able to shift more resources into capital accumulation to promote future economic growth
A country has $20 billion of domestic investment and net capital outflow of $10 billion. What is saving?
a. $10 billion b. $30 billion c. -$20 billion d. -$30 billion
What is the effect of monopsony on wages?
a. higher than competitive market b. lower than competitive market c. rapidly increasing over time d. steady at equilibrium level