What is the difference between capital-using and capital-saving technological advances? Give examples.
What will be an ideal response?
When a technological change requires the use of a greater amount of capital to produce a level of output, it is capital-using. In contrast, when a technological advance permits more output to be produced with the same amount of capital, or the same output to be produced with less capital, the advance is capital-saving.
Most technological advances are capital-using rather than capital-saving. Advances in production of manufacturing goods often require new capital investment in plant, equipment, or machinery, and are capital-using. Some technological advances, however, can save capital over the long term. Changes in farming practices to incorporate contour plowing or crop rotation may extend the life of equipment used in plowing or reduce the equipment needed for irrigation or soil management.
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An option is a contract that always
A. gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. states that the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Give 4 examples of situations that would cause the DD-curve to shift to the left
What will be an ideal response?
In a competitive labor market, if the demand for labor increases, labor demand will shift to the:
A. right and wages will increase. B. left and wages will increase. C. right and wages will decrease. D. left and wages will decrease.
Gold stored by Bank of Canada backs all Canadian currency.
a. true b. false