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

Question

Quizplus · Accepted Answer

In an economy, an increase in technological progress can lead to all of the above outcomes. With new and more advanced technology, firms can produce more output without necessarily having to hire more workers. Alternatively, they can produce the same amount of output with fewer workers. Moreover, an increase in technological progress can also lead to changes in the types of goods produced, as new and innovative products can be designed and manufactured. Thus, all three outcomes - increased output per worker, fewer workers needed, and changes in goods produced - are possible as a result of technological progress.

Suppose an Economy Experiences an Increase in Technological Progress