Technological change
What Technological change means in Economics A-Level, as defined for AQA.
Definitions of Technological change
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Reference: AQA
Advancements such as digital encryption and subscription technologies that alter the characteristics of goods, for example making television broadcasting excludable.
Alters production methods and costs, and significantly impacts market structures including perfect competition, imperfectly competitive markets and monopoly.
Advancements such as electronic tolling that allow providers to exclude non-payers, adding the characteristic of excludability to a good.
The introduction of new innovations and technologies that replace older, obsolete ones, driving long-term economic growth.
Encompasses both invention and innovation and is the fundamental driver of creative destruction.
Topics that use Technological change
- Public goods, private goods and quasi-public goods (AQA A-Level)
- Technological change (AQA A-Level)
- The dynamics of competition and competitive market processes (AQA A-Level)
Related terms
- Dynamic efficiency
- Innovation
- Productive efficiency
- Allocative efficiency
- Barriers to entry
- Capacity constraints
- Consumer surplus
- Creative destruction
Using Technological change in the exam
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