Question 1 Technological progress increases worker productivity, can improve standards of living in the long run, and encourages economic growth.

Question 1

Technological progress increases worker productivity, can improve standards of living in the long run, and encourages economic growth. However, more recent concerns of technological progress surround automation of manufacturing jobs with possible displacement of human capital. From a Keynesian perspective, what is an appropriate policy measure that could secure employment of human capital and maintain wages of individuals who would be adversely impacted by manufacturing automation?

Select the correct answer below:

Labor market reform, including the removal of a minimum wage.

Tax reform to decrease taxes and encourage adoption of new technologies.

Increasing the availability of government programs that provide training and promote transition to new sources of employment.

Introduce penalties to companies that adopt manufacturing automation technologies.

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Which of the following assumptions are proposed by Neoclassical economists to ensure stable economic growth? (Select all that apply)

Select all that apply:

Need a hint?

• sticky prices
• full employment of resources
• high taxes
• low, stable rate of inflation

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What category of input is "the joker in the deck?"

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Education of the population

Technology

Human Capital

Physical Capital

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True or false?

The easiest way to compare standard of living across countries is to compare overall GDP.

Select the correct answer below:

True

False

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When we consider labor and capital as the main inputs to produce something, and assume that we can employ both inputs in different proportions, we call ___________ the situation where an increase in capital per worker leads to higher productivity and an expansion of the output per worker in the economy.

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technological progress

capital deepening

capital contraction

capital widening

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Which of the following does allow higher savings ? Select all that apply. 

Select all that apply:

• Increases in physical capital
• Increases in human capital
• Technological improvement
• An increase in current consumption