Give a definition of technological advance. What role does time play in the definition according to economists?
What will be an ideal response?
Technological advance involves the development of new and improved products and new and improved ways of producing and distributing them. It is a three-step process of invention, innovation, and diffusion. Technological advance occurs over the very long run, a period of time in which technology can change and in which firms can introduce entirely new products into the market.
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John raises bees to pollinate his apple trees. One of the bees just stung him. This is a(n)
A) private cost. B) social cost. C) internality. D) common property.
The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is
a. an expansion in investment resulting from a reallocation of resources away from consumption. b. a larger output resulting from a more efficient use of resources. c. greater equality of income resulting from an increase in the number of workers. d. an increase in the profitability of business enterprises resulting from an increase in investment.