WHAT DO ADVANCES IN TECHNOLOGY (OR TECHNOLOGICAL PROGRESS) MEAN IN ECONOMICS?

When you hear the word "technology," you probably think of physical objects like industrial equipment, fast computers, and so on.

But, When economists talk about "technology," they're referring to different methods of production.

More appropriately, technology refers to the bodies, skills and knowledge associated with the use of resources in production.

Technology refers to a vast body of knowledge and tools that make it easier to make efficient and inventive use of economic resources in the production of goods and services.

What are advances in technology?

In economics, advances in technology refer to the discovery or development of new and improved methods of producing goods.

It's an increase in a product's efficiency that allows a firm to increase output without increasing input.

Advances in technology can also be defined as a change in the body, skill, and knowledge about the use of resources in production that results in economic advancement or economic progress

It is anything that can help a firm produce goods and services more quickly, more effectively, and at a lesser cost.

Advances in technology increase the productivity of factors of production such as labour, capital etc.

Advances in technology mean three things:

1. It is the ability to produce the same output with fewer resources or inputs.

2. It is the ability to produce more output with the same inputs or resources as before.

3. It is also the ability to produce goods and services with more equality from given inputs or resources. 

That is, it is the ability to produce qualitatively superior goods from given inputs.

Advances in technology have three implications: First, It shifts the isoquant curve inward, indicating that the same level of output can be produced with fewer inputs.

Secondly, it results in an outward shift in the production possibility curve, indicating economic growth as more of both goods can be produced with the same inputs.

Lastly, it shifts the supply curve outward, indicating that more outputs can be produced with the same inputs

It's worth noting that advances in technology are sometimes referred to as "technological progress" or "technical progress."

To sum up, technology is the methods and processes of production while advancement in technology (or technological progress) is the ability to produce more and better goods and services.

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