Describe the difference between technology and positive technological change
What will be an ideal response?
A firm's technology refers to the processes it uses to turn its land, labor, capital and entrepreneurial inputs into outputs of goods and services. When a firm experiences positive technological change it is able to produce more output using the same inputs or the same output using fewer inputs. Technological change can result from rearranging the layout of a store or manufacturing plant, the installation of faster or more durable equipment or other factors.
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Which of the following would be an example of capital deepening?
(A) Laying off employees when a factory is modernized. (B) Moving a manufacturing plant overseas where labor costs are lower. (C) Paying for an employee to take college courses. (D) Permitting two workers to share one job.
A mid-size firm may have a "__________" line of credit, meaning all or part of it can be converted into an intermediate-term loan
A) revolving B) secured C) guaranteed D) mezzanine