Suppose an economy experiences an increase in technological progress. This increase in technological progress will:
A) lead to changes in the types of goods produced.
B) allow the same amount of output to be produced with fewer workers.
C) allow more output to be produced with the same number of workers.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

An increase in technological progress will lead to changes in the types of goods produced as new technologies are developed and new products become possible. It will also allow the same amount of output to be produced with fewer workers, as machines and automation are used to increase efficiency. Finally, it will allow more output to be produced with the same number of workers, as workers are able to produce more per hour with the help of technology. Therefore, all of the above statements are true.

Suppose an Economy Experiences an Increase in Technological Progress