What effect does improved technology have on economic growth?

What effect does improved technology have on economic growth?

• A. It decreases the amount of goods and services available
• B. It provides more goods and services
• C. It restricts market competition
• D. It makes products less accessible

Answer: (B)

Improved technology plays a significant role in enhancing economic growth primarily by providing more goods and services. When technology advances, it typically leads to increased efficiency in production processes, allowing businesses to produce more output with the same or fewer resources. This boost in productivity results in a greater supply of goods and services available in the market, often at lower prices. Consequently, consumers benefit from a wider variety of products and improved quality of life. Additionally, technological advancements can drive innovation, leading to the creation of entirely new industries and job opportunities, which further contributes to economic growth. As companies adopt new technologies, they often experience reduced operational costs and can offer competitive pricing, benefiting both consumers and the economy overall. The infusion of technology helps stimulate demand and encourages higher standards of living as access to goods and services improves.

Improved technology plays a significant role in enhancing economic growth primarily by providing more goods and services. When technology advances, it typically leads to increased efficiency in production processes, allowing businesses to produce more output with the same or fewer resources. This boost in productivity results in a greater supply of goods and services available in the market, often at lower prices. Consequently, consumers benefit from a wider variety of products and improved quality of life.

Additionally, technological advancements can drive innovation, leading to the creation of entirely new industries and job opportunities, which further contributes to economic growth. As companies adopt new technologies, they often experience reduced operational costs and can offer competitive pricing, benefiting both consumers and the economy overall. The infusion of technology helps stimulate demand and encourages higher standards of living as access to goods and services improves.