Technological improvements are more likely to occur if
A)the economy is centrally planned.
B)entrepreneurs are compensated with higher profits for taking risks.
C)economic decisions are made by politicians rather than entrepreneurs.
D)companies face little competition in their markets.

Question

Quizplus · Accepted Answer

Entrepreneurs are more likely to invest in technological improvements if they are compensated with higher profits for taking risks. This motivates them to innovate and develop new technologies, leading to technological advancements. Central planning by the government or politicians may not necessarily lead to technological improvements as it can stifle innovation and entrepreneurship. Additionally, competition is also a key driver of technological progress as companies strive to develop better products and services to remain competitive in the market.

Technological Improvements Are More Likely to Occur If