Suppose an economy experiences an increase in technological progress. This increase in technological progress will A....

Suppose an economy experiences an increase in technological progress. This increase in technological progress will

A. Allow more output to be produced with the same number of workers
B. Allow the same amount of output to be produced with fewer workers
C. Lead to changes in the types of goods produced
D. All of the above
E. None of the above

Expert Solution

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Question:

Answer:

D. All of the above.

Due to technology chage both or the three things- A, B & C are possible. Technology change normally increase productivity and production level. But If producers use it for the cost cutting then they will replace the workers with technology or machinary that will decrease their cost but at the same time the cost of technology should not more than the cost of workers. Technology change can increase production level with the same workforce because its increase productivity. Other side technology also change the types of goods produced in the economy. Due to change in technology or experiences an increase in technological progress producers will diversify the products and the government will try to produce the goods that are importing yet. So, the benefits of experiences an increase in technological progress will depends upon several things in the economy.

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Rahul Sunny answered 1 year ago

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Suppose an economy experiences an increase in technological progress. This increase in technological progress will A....

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