Technological Change (AQA A-Level Economics): Flashcards
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Practise the cards
10 cards from this deck
Technological change definition
Technological change definition
Effect of invention, innovation & tech diffusion in economy
Science vs technology focus
Science vs technology focus
Science explains why; technology makes things happen
Invention vs innovation
Invention vs innovation
Invention creates new; innovation makes marketable products
Mechanisation vs automation
Mechanisation vs automation
Mechanisation: humans operate; automation: machines operate
Labour productivity meaning
Labour productivity meaning
Output per worker or output per hour worked
Productive efficiency
Productive efficiency
When average total cost of production is minimised
Dynamic efficiency
Dynamic efficiency
Improvements in productive efficiency over time (long run)
Disruptive innovation
Disruptive innovation
Innovation creating new market, disrupting existing ones
Sustaining innovation
Sustaining innovation
Innovation developing existing markets, not creating new ones
Creative destruction (Schumpeter)
Creative destruction (Schumpeter)
Capitalism evolves by replacing old tech with new innovation