Question

which of the following is not one of the three sources of technological change?

• increases in human capital
• additional amounts of existing capital
• better means of organizing and managing production
• better machinery and equipment

question 7
1 pts
when additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing

• decreasing production.
• diminishing returns.
• negative returns.
• accelerating returns.

Explanation:

• Question 1: Technological change sources include better machinery (physical capital improvement), better organization (process innovation), and human capital (skills/knowledge). Additional existing capital (like more old - type machines) is just quantity increase, not technological change.
• Question 2: The definition of diminishing returns is when adding one input (while another is fixed) leads to smaller output increases. Decreasing production is too broad, negative returns mean output decreases, and accelerating returns mean larger increases.

Answer:

• First question: additional amounts of existing capital
• Second question: diminishing returns