Question

How is the concept of technology, as defined with the aggregate production function, different from our everyday use of the word?

Short answer

Technology is the application of scientific knowledge to real-world problems, whether in industry or in our daily lives and it refers to all conceivable techniques of integrating diverse inputs to successfully produce output in the aggregate production function.

Step-by-step solution

Step1. Introduction

The statement says that the technology term as used in economics is different than the technology that people mean in daily life.

Step2. Explanation

In economics, technology is implied as the methods of production which improves and pushes the productivity up, and the cost of production down.

But, in everyday life, technology is something which is used for the electronic, digitalized, mechanical devices which eases the life and improves the standards of living.