GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It creates growth by creating safer work environments.
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It creates growth by increasing the productivity of labor.
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It restricts growth because workers have to learn the new technology.
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It restricts growth because of the additional expense of the new technology.
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Detailed explanation-1: -How Does Technology Impact Economic Growth? Technology is a key driver to economic growth by making production processes quicker and more efficient. Increased efficiencies translate to an increase in output. This means that companies are able to produce more goods and services in a shorter amount of time.
Detailed explanation-2: -Economists generally agree that economic factors affecting economic growth and development are: human resources, physical capital, natural resources, technology development, entrepreneurship, population growth and social overheads.
Detailed explanation-3: -Simply put, innovation can lead to higher productivity, meaning that the same input generates a greater output. As productivity rises, more goods and services are produced – in other words, the economy grows.
Detailed explanation-4: -Productivity growth occurs when we find ways to produce more with a given amount of labour and capital. Productivity growth is often associated with increases in efficiency and advances in technology. Increases in aggregate supply increase the productive capacity of the economy (usually called potential output).