Technological Change Flashcards
1
Q
What is invention?
A
Creating new products or processes
2
Q
What is innovation?
A
Developing or improving existing inventions into marketable products (e.g. the iPod)
3
Q
What are the different methods of production?
A
- mechanisation - a more capital intensive production method where humans operate machinery to get work done (e.g. combine harvesters in agriculture)
- automation - automatic control whereby computer controlled robots carry out tasks
- mass production - assembly line production
4
Q
How does technological change impact productivity?
A
It will generally improve labour productivity
5
Q
How can tech Change improve efficiency?
A
Improves productive efficiency (minimising average costs of production) and improves dynamic efficiency (in long run, whereby productive efficiency increases overtime)
6
Q
How does tech change impact costs of production?
A
It will lower costs of production, especially in long run
7
Q
How has tech change had an impact on market structures?
A
- as tech has improved - barriers to entry are lower - cheaper to enter markets
- tech has made markets more contestable
