Non-neutral technological change is more valuable to labor than neutral technological change
Indicate whether the statement is true or false
True . Neutral technological change leaves the proportion in which inputs are used (for example, the labor/capital ratio) unchanged, but non-neutral technological changes are innovations that alter the labor/capital ratio. The labor/capital ratio used to produce a given level of output falls after non-neutral technological change. Therefore, non-neutral technological change is more valuable to labor than neutral technological change.
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If the simplified version costs $2 million and its probability of success is 75%, whereas the cost of the complicated version is $10million, what is the minimum probability of success for the complicated version that would make the firm indifferent between the two software?
a. 0.3 b. 0.31 c. 0.32 d. 0.33
a. The buyer has more information than the seller about whether they are high or low risk.
a. Asymmetric information b. Imperfect information c. Adverse selection d. Moral hazard
Externalities are fundamentally the result of
a. the absence of competition in a market. b. the lack of well-defined or enforced property rights. c. poor information on the part of consumers. d. the presence of significant comparative advantages in production.
Explain the meaning of IMF conditionality and why it has been criticized
What will be an ideal response?