Labor productivity increases with technological change. Technological change would be which of the following?
a. a company getting new machines
b. advances in pure science, such as the discovery of gravity
c. invention and innovation
d. government policies funding research and development
c. invention and innovation
You might also like to view...
In a perfectly competitive industry, the industry demand curve
A) must be horizontal. B) must be vertical. C) is upward sloping. D) is downward sloping.
The variety of products and product features that consumers may choose from in monopolistically competitive industries:
A. at least partially offsets the economic inefficiencies of this market structure. B. leads to an optimal allocation of resources in the market structure. C. makes the demand curves facing firms in these industries more elastic. D. guarantees that firms produce at full-capacity output levels.
Related to the Economics in Practice on page 3: According to the Economics in Practice, when rural India is suffering from a drought where agricultural output is low, the opportunity cost of having someone out of the labor force, and therefore unable to work in agricultural production, is
A. low. B. infinite. C. zero, because the person is out of the labor force. D. high
Governments grant patents to encourage
A) research and development on new products. B) competition. C) low prices. D) firms to form public enterprises.