Question: A firm has successfully adopted a positive technological change when…

Answer: It can produce more output using the same inputs.

Question: The difference between technology and technological change is that…

Answer: Technology: transforms inputs into output

Technological: given level of output with a given quantity of inputs

Question: An example of positive technological change

Answer: A firm’s workers participate in a training program designed to increase the number of surf boards they can produce per day.

Question: Which of the following statements best describes the chain stores’ actions?

Answer: The firm is able to produce more output (increase its sales) using fewer inputs (less trucks). Therefore, the chain of convenience stores has implemented a positive technological change.

Question: The best activity of a firm is

Answer: To use inputs to produce outputs of goods and services.

Question: A characteristic of the long run is

Answer: All inputs can be varied.

Question: Which of the following is a factor of production that generally is fixed in the short run?

Answer: A factory building

Question: Which of the following is an example of a long run adjustment?

Answer: Walmart builds another supercenter

Question: Which of the following is the best example of a shirt run adjustment?

Answer: Your local Walmart his two more associates

Question: If a producer is not able to expand its plant capacity immediately, it is…

Answer: Operating in the short run