Question : 8.1   Technology: An Economic Definition 1) A firm has successfully adopted : 1267117

8.1   Technology: An Economic Definition

1) A firm has successfully adopted a positive technological change when

A) it can produce more output using the same inputs.

B) it produces less pollution in its production process.

C) can pay its workers less yet increase its output.

D) it sees an increase in worker productivity.

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

A) better trained workers

B) more efficient physical capital

C) higher skill level of managers

D) outsourcing some aspect of production

3) Which of the following is an example of market “production”, as used by economist?

A) Garvey takes out a low-cost government loan to start his pet-sitting business.

B) Heidi makes a pizza for her family’s dinner.

C) Katrina works as a cashier at the local produce stand.

D) The theatre and film studies department in Fine Art’s College stages a play at the local theatre.

4) A firm’s cost of production is determined by all of the following except

A) the technology used to produce its output.

B) the productivity of its workers.

C) the cost of raw material used in production.

D) the amount of corporate taxes it must pay on its profit.

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

A) investment in human capital.

B) economies of scale.

C) positive technological change.

D) inspired management.

6) The difference between technology and technological change is that

A) technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm’s ability to produce a given level of output with a given quantity of inputs. 

B) technology is carried out by firms producing physical goods but technological change is an intellectual exercise into seeking ways to improve production.

C) technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

D) technology involves the use of capital equipment while technological change requires the use of brain power.

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

A) A firm offers workers a higher wage to work on weekends and at night. As a result, the firm is able to increase its weekly production of surf boards.

B) A firm buys an additional machine that it uses to make surf boards. As a result, the firm is able to increase its weekly production of surf boards.

C) A firm conducts a new advertising campaign. As a result, the demand for the firm’s surf boards increases.

D) A firm’s workers participate in a training program designed to increase the number of surf boards they can produce per day.

8) Suppose a chain of convenience stores reorganized 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? 

A) The change implemented is not an example of technological change because it did not require the use of new machinery of equipment. 

B) Technological change refers only to the introduction of new products or improvements to existing product. As such, the scenario described in the question is not technological change.

C) The firm is able to produce more output (increase its sales) using fewer inputs (less trucks). Therefore, the chain of convenience stores has implemented a positive technological change.

D) The scenario described is an example of management efficiency and not technological change. Essentially, the chain changes its way of operating its business.

9) Improvements in inventory control represent a positive technological change because they allow firms to produce the same output with fewer inputs. In recent years, many firms have adopted an inventory system in which firms accept shipments from suppliers as close as possible to the time they will be needed. Wal-Mart has been a pioneer in using inventory control systems to this in its stores. This type of inventory system is called a ________ inventory system.

A) first-in-first-out

B) cash-and-carry

C) just-in-time

D) buy-now-pay-later

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