What is the difference between capital-using and capital-saving technological advances? Give examples.
What will be an ideal response?
When a technological change requires the use of a greater amount of capital to produce a level of output, it is capital-using. In contrast, when a technological advance permits more output to be produced with the same amount of capital, or the same output to be produced with less capital, the advance is capital-saving.
Most technological advances are capital-using rather than capital-saving. Advances in production of manufacturing goods often require new capital investment in plant, equipment, or machinery, and are capital-using. Some technological advances, however, can save capital over the long term. Changes in farming practices to incorporate contour plowing or crop rotation may extend the life of equipment used in plowing or reduce the equipment needed for irrigation or soil management.
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What is the voting paradox?
A) people are aware that their votes will not change the political outcome since these outcomes are predetermined by a group of influential politicians B) the observation that majority voting may not always result in consistent choices C) the observation that less than 60 percent of those eligible to vote actually vote D) the idea that wealthy corporations are able to sway politicians to act in ways contrary to the desires of the majority
The purchase of U.S. assets by foreigners is a:
a. capital inflow. b. capital outflow. c. current account deficit. d. unilateral transfer.