Economic Growth – End of Chapter Problem Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth. a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an assembly line process, replacing the previous process which had required the workers and their equipment to move around the plant to each car that was being built. This technological change made workers much more b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased workers' and, for the first time, automobiles were affordable for large numbers of people. More customers meant production of the Model T generated , lowering the average cost to produce a car. These productivity gains enabled Ford to lower the price of the Model T from $825 in 1908 to $260 in 1925.
Economic Growth – End of Chapter Problem Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth. a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an assembly line process, replacing the previous process which had required the workers and their equipment to move around the plant to each car that was being built. This technological change made workers much more b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased workers' and, for the first time, automobiles were affordable for large numbers of people. More customers meant production of the Model T generated , lowering the average cost to produce a car. These productivity gains enabled Ford to lower the price of the Model T from $825 in 1908 to $260 in 1925.
Chapter8: Productivity And Growth
Section: Chapter Questions
Problem 2.4P
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![Economic Growth – End of Chapter Problem
Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth.
a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an
assembly line process, replacing the previous process which had required the workers and their equipment to move around
the plant to each car that was being built. This technological change made workers much more
b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased workers'
and, for the first time, automobiles were affordable for large numbers of people. More
customers meant production of the Model T generated
, lowering the average cost to
produce a car. These productivity gains enabled Ford to lower the price of the Model T from $825 in 1908 to $260 in
1925.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b7bbe2b-57b6-4a81-8565-79c80c32849b%2F6fa01456-b3e0-47c2-a980-2ad7441adc65%2Fcpbm8qg_processed.png&w=3840&q=75)
Transcribed Image Text:Economic Growth – End of Chapter Problem
Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth.
a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an
assembly line process, replacing the previous process which had required the workers and their equipment to move around
the plant to each car that was being built. This technological change made workers much more
b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased workers'
and, for the first time, automobiles were affordable for large numbers of people. More
customers meant production of the Model T generated
, lowering the average cost to
produce a car. These productivity gains enabled Ford to lower the price of the Model T from $825 in 1908 to $260 in
1925.
![Economic Growth – End of Chapter Problem
Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth.
a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an
assembly line process, replacing the previous process which had required the workers and their equipment to move around
the plant to each car that was being built. This technological change made workers much more
interchangeable
productive
b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased v
and, for the first time, automobiles were affordable for large num politically active
specialization
f the Model T generated
| , lowering the average cost to
real incomes
vity gains enabled Ford to
constant returns to scale r from $825 in 1908 to $260 in
comparative advantage
economies of scale
diseconomies of scale](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b7bbe2b-57b6-4a81-8565-79c80c32849b%2F6fa01456-b3e0-47c2-a980-2ad7441adc65%2Fu4cqm8_processed.png&w=3840&q=75)
Transcribed Image Text:Economic Growth – End of Chapter Problem
Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth.
a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an
assembly line process, replacing the previous process which had required the workers and their equipment to move around
the plant to each car that was being built. This technological change made workers much more
interchangeable
productive
b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased v
and, for the first time, automobiles were affordable for large num politically active
specialization
f the Model T generated
| , lowering the average cost to
real incomes
vity gains enabled Ford to
constant returns to scale r from $825 in 1908 to $260 in
comparative advantage
economies of scale
diseconomies of scale
Expert Solution
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a)Because of technological change,productivity of worker increases.
Therefore answer is productivity.
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