Which of the following are examples of a firm experiencing a positive technological change?
a. A firm is able to reduce its inputs by 15 percent and still produce the same level of output.
b. A seminar attended by the firm's workers makes them more productive.
c. A firm adds 5 percent to its workforce and is able to maintain its initial level of output.
d. A firm restructures its distribution system and is able to save on its shipping times.
e. A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.
Examples a, b, d, and e are examples of positive technological change. Examples a and e involve change that results in the firm being able to produce the same output with a smaller quantity of inputs. Examples b and d involve change that results in the firm being able to produce more output with the same amount of inputs. Example c is not an example of technological change, because an increase in inputs is used to produce the same quantity of output.
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The ATC rises whenever the
a. upward pull of the AVC is greater than the downward pull of the AFC. b. upward pull of the AFC is greater than the downward pull of the AVC. c. AVC is equal to the AFC. d. MC is above the AVC.
Which of the following will cause the demand curve for a normal good to shift to the right?
a. a decrease in income b. an increase in the price of a complementary good c. a decrease in the price of the good d. an increase in the price of a substitute good e. an expectation of a future price decline
The Budget of the United States Government is officially submitted by: a. the President to Congress and contains spending and revenue proposals for the upcoming fiscal year. b. Congress to the President and contains spending and revenue proposals for the upcoming fiscal year. c. the President to Congress and contains proposals for tax revenues
d. Congress to the President and contains proposals for tax revenues. e. the President to Congress and is reviewed by the Supreme Court.