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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Governments exist to
A) maintain property rights. B) provide non-market mechanisms for allocating scarce resources. C) implement arrangements that redistribute wealth and income. D) all of the above.
Suppose your donut shop earns $24,000 in total revenues per month with explicit costs of $12,000 and opportunity costs of $8,000. Your accounting profit is
A) $16,000. B) $12,000. C) $4,000. D) zero.
The velocity of money is:
A. money supply divided by prices. B. spending divided by output. C. required monetary reserves divided by income. D. GDP divided by the money supply.
Over the period between 1960 and 2010, the increase in unemployment rate was the greatest in
A) early 1960s. B) late 2000s. C) mid 1970s. D) early 1980s. E) early 1990s.