T4 - Tech change

Question 1

What is invention

Answer 1

Making somethign new that hadnt existed before

Question 2

WHat is innovation

Answer 2

Improvements on invention

Question 3

Effects of tech change

Answer 3

Changes methods of production
Productivity
Efficiency
Dynamic efficiency
Costs of production

Question 4

How tech changes affect the labour market

Answer 4

Creates and takes jobs

Question 5

What is dynamic efficiency

Answer 5

When firms are productive cauing costs curves to reduce

Question 6

Factors affectign dynamic efficiency

Answer 6

Investment
State of tech
Motivation of workers
Access to finance

Question 7

Tech change on structures of markets

Answer 7

Reduces or increases barriers to entry

Question 8

Features of captialism

Answer 8

Eco freedom
Consumer soverignty
Limited gov
FInance sector
Profit motive
Market forces
Flexible labour markets
Free trade

Question 9

What is creative destruction

Answer 9

How captialism leads to strcture chanegs in the eco

Question 10

Free market justification of creative destruction

Answer 10

Allows unprofitable firms to shut down
Is an incentive for busiensses to make profit

Question 11

Arguments against Creative Destruction

Answer 11

Struct unemployment
Regional unemployment
Time lag of redistribution of resources
Firms only make a loss in short run, so no need to shut down