4.1.4.8 Technological change Flashcards
What is the difference between invention and innovation?
Invention: Creating a new product or production method.
Innovation: Improving or contributing to existing products or methods.
How does technological change affect production methods?
Technological change can lead to more efficient production methods, reducing costs and increasing productivity.
How does technological change affect productivity?
Technological change improves productivity by enabling firms to produce more output with the same or fewer inputs.
How does technological change affect firms’ costs of production?
Technological change can lower costs of production by improving efficiency and reducing waste.
What is an example of technological change reducing costs?
Mobile phones have become cheaper to produce due to technological advancements, leading to lower prices for consumers.
How does technological change lead to new products?
Technological change enables the development of new products, such as smartphones replacing traditional mobile phones.
How does technological change create new markets?
Technological change can create new markets by introducing innovative products or services, such as streaming services replacing DVDs.
How does technological change destroy existing markets?
Technological change can render existing products obsolete, such as VHS tapes being replaced by DVDs and streaming services.
What is creative destruction?
Creative destruction is the process by which innovation from new firms challenges existing firms, leading to the growth of productive firms and the decline of less productive ones.
Who proposed the concept of creative destruction?
Economist Joseph Schumpeter proposed the concept of creative destruction.
How does creative destruction affect the economy?
Creative destruction expands the economy’s productive potential by encouraging innovation and淘汰低效企业.
What role do SMEs play in technological change?
SMEs (Small and Medium-sized Enterprises) stimulate innovation, create jobs, and promote competition, driving technological change.
How does technological change influence market structure?
Technological change can alter market structures by enabling new firms to enter markets, increasing competition, and potentially reducing monopoly power.
Why do monopolies lack incentives to innovate?
Monopolies lack competition, reducing their incentive to innovate and leading to inefficiency and higher costs.
Why do oligopolies have strong incentives to innovate?
Oligopolies earn supernormal profits and compete to stay ahead, driving rapid technological change and innovation.
What is the impact of technological change on product quality?
Technological change often improves product quality, as seen in the evolution of mobile phones from basic models to advanced smartphones.
How does technological change affect consumer choice?
Technological change increases consumer choice by introducing new products and improving existing ones.
What is the relationship between technological change and efficiency?
Technological change improves efficiency by enabling firms to produce more output with fewer resources, reducing waste and costs.
How does technological change impact employment?
Technological change can both create and destroy jobs, as new industries emerge while old ones decline.
What is the role of competition in technological change?
Competition drives firms to innovate and adopt new technologies to maintain or gain market share.
How does technological change affect market entry?
Technological change can lower barriers to entry, enabling new firms to enter markets and compete with established firms.
What is the impact of technological change on monopolies?
Technological change can challenge monopolies by introducing new competitors and reducing their market power.
How does technological change influence investment?
Technological change encourages investment in research and development (R&D) to create innovative products and processes.
What is the long-term impact of technological change on markets?
Technological change leads to dynamic markets with continuous innovation, improved products, and increased competition.
