Question

Technological progress leads to which of the following?

Answer 1

An increase in efficiency

Answer 2

The correct answer is A) An increase in efficiency.

Technological progress leads to an increase in efficiency. Technological progress is gained by producing more with input. One way to measure progress through technology is considering the total growth minus the increment in labor force and capital.

Companies focused on technological progress invest in new research and equipment. This way, a line of production or any Company can produce more in less time, using fewer resources, maximizing its productivity.