« previous next »

Author Question: Why is investing in technology a better option than investing in labor or capital as a means to ... (Read 138 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?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Surface magnetic field of SU Aur (a young star of T Tauri type), reconstructed by means of Zeeman-Do Surface magnetic field of SU Aur (a young star of T Tauri type), reconstructed by means of Zeeman-Do
Technology Technology
Newspapers and Technology Newspapers and Technology
“Career choice” for many women means leaving their paid jobs for a number of years when they ... “Career choice” for many women means leaving their paid jobs for a number of years when they ...
The proportion of adults 55 to 64 in the labor force in Germany, Italy, and France is low and has ... The proportion of adults 55 to 64 in the labor force in Germany, Italy, and France is low and has ...
A 40.0-kg crate is being raised by means of a rope. Its upward acceleration is 2.00 m/s2. What ... A 40.0-kg crate is being raised by means of a rope. Its upward acceleration is 2.00 m/s2. What ...
Video: Oxygen transport - methods and oxyhemoglobin

For a complete list of videos, visit our video library