A breakthrough in technology is most likely to O reduce the

A breakthrough in technology is most likely to: O reduce the labor needed to produce a given amount of output. O lower the standard of living in a country in the long run. O increase the cost of production for a firm. decrease the demand for all goods and services in a country. reduce the availability of skilled workers. An increase in the amount of capital per worker always increases the value of output. True False

Solution

1. Reduce the labour needed to produce a given amount of output, because faster manufacturing lines and robotic arms help in reducing the time and labour.

a) With the help of new technology comes precision manufacturing, zero defects, thus high quality of products are to be obtained, so it is wrong to say that it lowers the standard of living, infact it increase the standard of living.

b) With the technological breakthrough the cost of production decreases in the long term, as with precision, the wastage of raw materials are reduced drastically.

c) With technology, high quality of goods and services are obtained, thus the demand for goods and services will rise.

d) In order to operate the complex machinerys developed with the technological advancements more skilled labours are required.  

2. This statement is very absolute, it is not necessary that it will increase the value of output, it can increase labour productivity bu not capital productivity. So this statement is false.