« previous next »

Author Question: Why is investing in technology a better option than investing in labor or capital as a means to ... (Read 95 times)

fasfsadfdsfa

  • Hero Member
  • *****
  • Posts: 554
on: Jun 30, 2018
Why is investing in technology a better option than investing in labor or capital as a means to sustained growth?
 
  What will be an ideal response?

Question 2

Suppose you pay 290.00 for a new tablet computer. This is an example of
 
  A) money as a store of value. B) money as a standard of deferred payment.
  C) barter. D) money as a medium of exchange.


Mholman93

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

The main reason why investing in technology is a better option than investing in labor or capital as a means to sustained growth is that investing in labor and capital is subject to diminishing marginal product. This implies that the additional output generated by investing in an extra unit of capital or labor diminishes as we have more of capital and labor. Hence, growth cannot be sustained by investing only on labor or capital. On the other hand, investment in technology builds on previous stocks of technology. Hence, technological growth is exponential in nature.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Natural Capital Natural Capital
Irrigation Technology Can Conserve Water Irrigation Technology Can Conserve Water
In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
This girl ran four spinning machines in a cotton mill in Whitnel, North Carolina. Only 4 feet, 3 inc This girl ran four spinning machines in a cotton mill in Whitnel, North Carolina. Only 4 feet, 3 inc
Share of Human Capital in Wages in Advanced Countries Share of Human Capital in Wages in Advanced Countries
An educational institution has total direct labor and material costs of $1964 per student. Its ... An educational institution has total direct labor and material costs of $1964 per student. Its ...
Video: Proteins

For a complete list of videos, visit our video library