Is it possible for technological change to be negative? If so, give an example
What will be an ideal response?
Technological change could be negative, for instance, when a natural disaster hits, or when a firm hires less-experienced workers. In these cases, the firm would produce a lower level of output with the same inputs.
You might also like to view...
Which of the following are ways in which corporations can reduce their U.S. tax burdens?
A) taking advantage of deductions and credits B) shifting foreign profits to overseas subsidiaries C) deducting past losses from income tax in profitable years D) all of the above
Suppose that Toyota buys a factory previous owned by Chrysler Motors. Economists would:
A. consider this to be an economic investment. B. not consider this to be an economic investment because Toyota is less efficient than Chrysler. C. not consider this to be an economic investment because no new capital is created through the purchase. D. not consider this to be an economic investment because there is no way to know how it will affect stock holdings in the two companies.