The Difference Between Technology and Technological Change Is That

question 158

Multiple Choice

The difference between technology and technological change is that

• A) technology refers to the processes used by a firm to transform inputs into output, while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.
• B) technology is carried out by firms producing physical goods, but technological change is an intellectual exercise in seeking ways to improve production.
• C) technology is product-centered, that is, developing new products with our limited resources, while technological change is process-centered in that it focuses on developing new production techniques.
• D) technology involves the use of capital equipment, while technological change requires the use of brain power.

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Definitions:

Equipment

Tangible property used in operations, such as machinery or computers, that has a useful life beyond a single reporting period.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Straight-Line Basis

An accounting method of depreciation where the value of an asset is reduced evenly over its useful life.

Salvage Value

The projection of an asset's resale value after it ceases to be of use.