Technology is
A) the set of constraints on production defining how one can combine or convert inputs into outputs
B) a return that is just sufficient to recover an entrepreneur's opportunity cost
C) a concept that has no effect on production

Question

Quizplus · Accepted Answer

Technology refers to the methods, techniques, and tools used to transform inputs such as labor, capital, and raw materials into outputs such as goods and services. It determines the combinations and transformations of inputs that are possible and defines the production process. Technology affects the efficiency and productivity of the production process, which in turn affects the economic outcomes. Therefore, option A is the most appropriate choice. Option B is incorrect because it refers to the concept of opportunity cost, which is unrelated to the definition of technology. Option C is incorrect because technology has a significant impact on production and the economy.

Technology Is