A measure of an economy's technological progress can be found if there is data on:
A) the growth of labor and capital, the income shares of labor and capital, and the growth of total output (GDP).
B) the growth of output and the growth of population.
C) the economy's expenditures on education.
D) the economy's level of investment, depreciation, and population growth.

Question

Quizplus · Accepted Answer

The growth of labor and capital, the income shares of labor and capital, and the growth of total output (GDP) are all indicators of technological progress. If there is more output per unit of labor and capital input, this suggests that technology is improving. Additionally, changes in the income shares of labor and capital can indicate shifts in the economy's production function due to the adoption of new technologies. Expenditures on education (C) can be a factor in a country's technological progress, but this measure alone does not capture the full picture. Similarly, growth in output and population (B) can indicate economic growth, but not necessarily technological progress. Investment, depreciation, and population growth (D) are important economic factors, but they do not solely measure technological progress.

A Measure of an Economy's Technological Progress Can Be Found