Question 1

A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor.This is an example of

Accepted Answer

Technological change refers to improvements in the production process that increase output. Rearranging the factory floor layout would qualify as a positive technological change because it resulted in increased production and sales.

Question 2

Which of the following does not determine a firm's cost of production?

Accepted Answer

Corporate taxes affect a firm's profitability, not its cost of production. The other options directly impact the cost of production as they influence the resources and inputs required to produce the firm's output.

Question 3

The statement that correctly describes the distinction between technology and technological change is

Accepted Answer

Technology refers to the processes used by a firm to transform inputs into output of goods and services, while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs. In other words, technology refers to the tools, techniques, and methods used to produce goods and services, while technological change refers to improvements in the efficiency and productivity of those tools, techniques, and methods.

Question 4

Is it possible for technological change to be negative? If so, give an example.
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Accepted Answer

The answer of Is it possible for technological change to...

Question 5

When does a 'stockout' occur?

Accepted Answer

A 'stockout' occurs when a firm loses sales because goods consumers want are not available, leading to a shortage of supply. This may occur due to a variety of reasons such as unexpected demand, production issues or inadequate inventory management.

Question 6

Which of the following is an example of market 'production,' as used by economists?

Accepted Answer

The theatre and film studies department staging a play is an example of market production because it involves the production of a good (the play) that is sold in the market (the local theatre). Garvey taking out a low-cost government loan to start his pet-sitting business is not an example of production, but rather financing. Heidi making a pizza for her family's dinner is not an example of market production because it is not sold in the market. Katrina working as a cashier at the local produce stand is an example of labor, but not production as she is not directly involved in creating a good or service for sale.

Question 7

What is the difference between technology and technological change?

Accepted Answer

Technology encompasses the methods and processes used to transform inputs into outputs, whereas technological change refers to improvements in a firm's efficiency or ability to produce the same output with fewer inputs.

Question 8

When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm

Accepted Answer

When a firm produces more output using the same inputs, it indicates that the firm has improved its technology or processes, which is known as positive technological change. This allows the firm to increase its productivity and achieve higher profits without increasing its costs or prices. Hiring more workers is not necessarily required in this scenario. The concept of short run is not relevant to this situation. Therefore, the best choice is B.

Question 9

Suppose a chain of convenience stores reorganised its system of supplying its stores with food.This led to a sharp reduction in the number of trucks that the company had to use and increased the amount of fresh food on store shelves.Which of the following statements best describes the chain stores' actions?

Accepted Answer

The chain of convenience stores has implemented a positive technological change because it has increased the amount of fresh food on store shelves and reduced the number of trucks used to supply the stores. This is an example of using technology to improve the production process and increase efficiency, leading to a reduction in inputs (trucks) and an increase in output (sales). The change does not necessarily require the introduction of new machinery or equipment, but it still qualifies as technological change.

Question 10

Which of the following is an example of positive technological change?

Accepted Answer

The answer of Which of the following is an example...

Question 11

Which of the following is not a source of technological advancement for a producer?

Accepted Answer

Outsourcing some aspect of production does not inherently represent a technological advancement. It is a business strategy for cost reduction or efficiency improvement by transferring parts of work to outside suppliers rather than completing it internally. Technological advancement typically involves the development or improvement of products, processes, or services, often through innovation in equipment, techniques, or software, which is not directly implied by outsourcing.

Question 12

Describe the difference between technology and positive technological change.
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Accepted Answer

The answer of Describe the difference between technology and positive...

Question 13

What is the basic activity of a firm?

Accepted Answer

The basic activity of a firm is to use inputs such as resources, labor, and capital to produce outputs of goods and services. This is the essence of the production process and the main reason why firms exist in the first place. Setting prices, competing with other firms, and providing jobs are all important activities, but they are secondary to the primary goal of producing goods and services.

Question 14

What are the processes called that a firm uses to turn inputs into outputs of goods and services?

Accepted Answer

The processes that a firm uses to turn inputs into outputs of goods and services are known as technology.

Question 15

A firm has successfully adopted a positive technological change when

Accepted Answer

A positive technological change is one that increases efficiency through the use of technology. This means that the firm is able to produce more output using the same inputs, resulting in increased productivity and profitability. Option B is a positive environmental change but not necessarily a technological one. Option C is not positive for the workers and can result in ethical issues. Option D is a result of a positive technological change but not necessarily the only indicator.

Question 16

What happens when a firm experiences a positive technological change?

Accepted Answer

A positive technological change allows a firm to produce more output using the same inputs, or the same output using fewer inputs. This can increase the firm's efficiency and profitability. It may also result in lower costs, which could result in lower prices for consumers and increased demand for the firm's products or services. While increased profitability can lead to a rise in stock price, this is not always guaranteed. The value of the firm's assets may also rise, but this depends on the specifics of the technological change and the assets in question. The firm may or may not hire additional workers, depending on the extent to which the technological change can be automated or otherwise managed by existing workers.

Question 17

In economics, technology only refers to the development of new products.

Accepted Answer

In economics, technology refers to the application of scientific knowledge for practical purposes, including the development of new products, as well as improvements in production processes and efficiency.

Question 18

When a firm experiences negative technological change, it can produce the same output with fewer inputs.

Accepted Answer

Negative technological change means a firm's technology becomes less efficient, requiring more inputs to produce the same level of output.

Question 19

The process a firm uses to turn inputs into outputs of goods and services is called technology.

Accepted Answer

This statement is true.

Question 20

If a firm experiences positive technological change, it is able to produce more output using the same inputs.

Accepted Answer

Positive technological change leads to an increase in productivity and efficiency, which allows firms to produce more output using the same level of inputs.

Quiz 7: Technology Production and Costs