Which statement best describes the impact of technology on productivity as illustrated by the accounting example?

Which statement best describes the impact of technology on productivity as illustrated by the accounting example?

• A. It increases wages for tech workers
• B. It reduces the number of tasks employees can perform
• C. It allows significantly more transactions to be completed in the same time
• D. It has little effect on efficiency

Answer: (C)

Technology improves productivity by increasing output per unit of time. In the accounting example, digital systems automate routine tasks, speed data entry, validation, posting, and reconciliation, so the same workforce can process many more transactions in the same period. That higher throughput directly shows greater productivity. The other statements don’t fit the example: wages for tech workers don’t explain the firm’s output in accounting tasks; automation typically expands capacity rather than simply reducing the number of tasks employees can perform; and claiming little effect contradicts the observed speed and volume gains.

Technology improves productivity by increasing output per unit of time. In the accounting example, digital systems automate routine tasks, speed data entry, validation, posting, and reconciliation, so the same workforce can process many more transactions in the same period. That higher throughput directly shows greater productivity.

The other statements don’t fit the example: wages for tech workers don’t explain the firm’s output in accounting tasks; automation typically expands capacity rather than simply reducing the number of tasks employees can perform; and claiming little effect contradicts the observed speed and volume gains.