ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -False. Technology is another factor of production apart from capital and labor that changes the total output of the economy. Technological improvement refers to the use of innovative and inventive methods that increase the productivity of the inputs like capital, labor, and entrepreneurs. 2.

Detailed explanation-2: -Technological progress allows for the more efficient production of more and better goods and services, which is what prosperity depends on. However, the mechanisms through which technology is developed, adopted and used in production are complex.

Detailed explanation-3: -A production technology is the specific combination of labor, physical capital, and technology that makes up a particular method of production. In the long run, firms can choose their production technology, so all costs become variable costs.

Detailed explanation-4: -Technology has a big impact on businesses, in terms of both updating existing products and finding new ways of manufacturing products. Technology benefits businesses as it allows them to produce higher quantities, make products more consistent and be more cost-effective.

Detailed explanation-5: -Technological change shifts the production function for cultural goods and services outward. More cultural output can be produced for the same input cost or the same output for lower input cost. In a competitive model this shifts the supply curve downward along the demand curve for cultural consumption.