« previous next »

Author Question: Why is investing in technology a better option than investing in labor or capital as a means to ... (Read 178 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?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Technology Technology
How People Match Their Goals to Their Means How People Match Their Goals to Their Means
Who Gets Executed? Gender Bias in Capital Punishment Who Gets Executed? Gender Bias in Capital Punishment
Food Safety and Technology Food Safety and Technology
The Means and Extremes of a Proportion The Means and Extremes of a Proportion
Three queens, fertile females in species that have a reproductive division of labor. Three queens, fertile females in species that have a reproductive division of labor.
Video: Introduction to Cystic Fibrosis

For a complete list of videos, visit our video library