An improvement in technology will lead to a. A lower equilibrium wage and lower equilibrium employment b. A higher equilibrium wage and higher equilibrium employment c. A lower equilibrium wage but higher equilibrium employment d. A higher equilibrium wage but lower equilibrium employment
An improvement in technology will lead to a. A lower equilibrium wage and lower equilibrium employment b. A higher equilibrium wage and higher equilibrium employment c. A lower equilibrium wage but higher equilibrium employment d. A higher equilibrium wage but lower equilibrium employment
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
An improvement in technology will lead to
a. A lower equilibrium wage and lower equilibrium employment
b. A higher equilibrium wage and higher equilibrium employment
c. A lower equilibrium wage but higher equilibrium employment
d. A higher equilibrium wage but lower equilibrium employment
Expert Solution
Step 1
An improvement in technology normally implies that fewer and additionally less expensive information sources are required. In the event that the expense of creation is lower, the benefits accessible at a given cost will increment, and makers will deliver more.
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