Question

Question from Macroeconomics. Need no more than 6-7 sentences.

Do the technological advances in the “new economy” bring benefits to all?

Answer 1

It is generally accepted that technological advancement is an engine of economic growth. The technological development or its advancement is an important factor increasing the growth rate of the economy in macro level. A nation which effectively uses the technological advancement and disseminates it to all areas of the economy is able to create new employment and increase production and overall growth. At micro level the technological advancement reduces the cost and increases the profit and thereby increases the market shares of the firms.

A technological advancement leads to the maximum utilization of the available resources. Thus the concept of economic efficiency is achieved with improvement in technology. Not only the firms or producers but the consumers also benefit from a new technology. The consumers are able to get a product at the lowest price when there is an improvement in technology. Thus the consumer’s welfare and the producer’s welfare will be maximized in an economy which promotes technological advancement. A technological advancement helps the citizens to save money and time.

The benefit of the technological advancement is not confined within in the boundaries of an economy. With the spreading of new technological know-how, the rest of the world is also able to the benefit of technological advancement in a country.

The technological advancement promotes international trade. With the advancement of technology a nation can produce different products with comparative cost advantage. This comparative advantage in cost enables the country to produce and export cheap and better quality products in to world nations. This will improve one country’s competitiveness in the world market and brings more foreign exchange to the country.

In short a technological advancement is benefit to the micro level as well as the macro level. The technological advancement is worthwhile and benefit to all.