tailieunhanh - Lecture Economics: The basics (2/e): Chapter 15 - Michael Mandel

Chapter 15 - Technological change. After reading the material in this chapter, you should be able to: Explain the importance of technological change, including the information revolution; list three types of innovation; explain the link between innovation and innovative activities;. | Chapter 15 Technological Change McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Explain the importance of technological change, including the information revolution. List three types of innovation. Explain the link between innovation and innovative activities. Identify and discuss the factors that affect the supply curves for innovative activities. Identify and discuss the factors that affect the demand curves for innovative activities. 15- Nature of Technological Change Technological change is the introduction into the market of new goods and services, or new processes of production, that did not exist before. Technological change pushes out the limits of what we can produce, given today’s natural resources and workforce. It is responsible for the large increases we have obtained in living standards. 15- Information Revolution Technology changes are not steady, but occur in waves. The information revolution occurred when computers became powerful enough to make a difference in the economy. It was driven by advances in electronics as electronic devices became smaller, more powerful, and cheaper. Moore’s law says that microprocessors double their performance every 18-24 months. 15- Types of Innovation A productivity-enhancing innovation is one that enables the industry to produce more of the product, while holding fixed the resources used. This has the effect of shifting the supply curve to the right. Businesses will typically reduce the market price and increase the quantity sold in the market. 15- Types of Innovation A second type of innovation results in the creation of new products and services. The creation of new goods and services enables people to do things that they could not do before and results in a major change in people’s lives. Examples of new product innovation include television, cell phones, and the Internet. 15- Types of Innovation A quality-of-life innovation . | Chapter 15 Technological Change McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Explain the importance of technological change, including the information revolution. List three types of innovation. Explain the link between innovation and innovative activities. Identify and discuss the factors that affect the supply curves for innovative activities. Identify and discuss the factors that affect the demand curves for innovative activities. 15- Nature of Technological Change Technological change is the introduction into the market of new goods and services, or new processes of production, that did not exist before. Technological change pushes out the limits of what we can produce, given today’s natural resources and workforce. It is responsible for the large increases we have obtained in living standards. 15- Information Revolution Technology changes are not steady, but occur in waves. The information revolution .