Describe the difference between technology and positive technological change
What will be an ideal response?
A firm's technology refers to the processes it uses to turn its land, labor, capital and entrepreneurial inputs into outputs of goods and services. When a firm experiences positive technological change it is able to produce more output using the same inputs or the same output using fewer inputs. Technological change can result from rearranging the layout of a store or manufacturing plant, the installation of faster or more durable equipment or other factors.
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In the above figure, the marginal propensity to consume (MPC) equals
A) 0.9. B) 0.75. C) 0.8. D) 0.85.
Tariffs ________ consumer surplus and import quotas ________ consumer surplus
A) decrease; decrease B) increase; increase C) decrease; increase D) increase; decrease
Suppose you came across the following headline in a story of a daily newspaper: "Automobile prices are so high right now that there must be a shortage. As a consequence not everyone who needs an automobile will be able to buy one"
Is this statement necessarily correct?
Refer to Figure 4-18. As a result of the tax, is there a loss in producer surplus?
A) No, because the consumer pays the tax. B) Yes, because producers are not selling as many units now. C) No, because the market reaches a new equilibrium D) No, because producers are able to raise the price to cover their tax burden.