4.1.4.8 Technological Change and Its Impacts

What is the difference between invention and innovation?

• Invention is the creation of a new idea, while innovation is making that idea a commercial reality.

• Invention is the commercial application of a new idea, while innovation is the creation of the idea.

• Invention and innovation are the same concepts.

• Invention is only related to technology, while innovation is related to business.

What is the concept of 'creative destruction'?

• The process of creating new products that destroy old markets and jobs.

• The process of creating new jobs without affecting old markets.

• The process of maintaining old markets while introducing new products.

• The process of reducing costs in production.

How has technological change affected the mobile phone industry?

• It has made previous developments completely redundant.

• It has maintained the relevance of old mobile phone models.

• It has decreased the variety of mobile phones available.

• It has increased the cost of mobile phones.

What is the impact of technological change on the cost of production?

• It increases the cost of production over time.

• It reduces the cost of production over time.

• It has no impact on the cost of production.

• It only affects the cost of production in the short term.

How does technological change influence market structures?

• It has no impact on market structures.

• It generally makes markets more competitive and contestable.

• It only affects small-scale markets.

• It generally makes markets more monopolistic.

What is the effect of the internet on barriers to entry in various industries?

• It only affects barriers to entry in the retail industry.

• It has no effect on barriers to entry.

• It has increased barriers to entry.

• It has significantly reduced barriers to entry.

What is the role of technological change in job creation according to recent trends?

• It has only created jobs in the technology sector.

• It has generally created more jobs than it has destroyed.

• It has had no impact on job creation.

• It has destroyed more jobs than it has created.

What is the impact of technological change on productive efficiency?

• It decreases productive efficiency by increasing the cost of production.

• It increases productive efficiency by lowering the cost of production.

• It has no impact on productive efficiency.

• It only affects productive efficiency in the short term.