11.1 Q&A – Flashcards
Unlock all answers in this set
Unlock answersquestion
What is the difference between technology and technology change?
answer
Technology is the process of using inputs to make output, while technological change is when a firm is able to produce the same output using fewer inputs
question
Is it possible for technological change to be negative? If so, give an example.
answer
It is possible [...] An example is when a hurricane damages a firms facilities.
(Thus, the firm produces less with the same)
question
Briefly explain whether you agree with the following statement:
"Technology change refers only to the introduction of new products"
answer
Both A and B (incorrect)
question
Which of the following are examples of a firm experiencing positive technology change?
a. A firm is able to cut each workers wage rate by 10% and still produce the same level of output
b. A training program makes a firm's workers more productive
c. An exercise program makes a firm's workers more productive
d. A firm cuts its workforce and is able to maintain its initial level of output
e. A firm rearranges the layout of its factory and finds by using its initial set of inputs, it can produce exactly as much as before
answer
a. is NOT
b. is
c. is
d. is
e. is NOT
question
[Related to making the connection]
"This is not an example of technological change because it did not require the use of new machinery or equipment"
Briefly explain whether you agree with this statement
answer
Both A and B (Incorrect)
A) Tech. includes the speed of existing machinery
B) Tech. includes the efficiency of existing mach..
question
When a technological change occurs,
answer
either A or B
A) the same output can be produced with fewer inputs
B) more output can be produced from the same inputs
