Question

What do economists mean when they refer to improvements in technology?

Short answer

According to economists, there are improvements in technology when the invention of new machines and techniques increases the productivity.

Step-by-step solution

Step 1.  What is technology?

Technology encompasses all techniques, skills, methods, and procedures employed in the manufacture of goods or services, as well as the achievement of goals such as scientific research.

Step 2. What do economists mean when they talk about improvements in technology?

According to economics, technological advancements occur when new machines and processes boost worker productivity and lower production costs, or when these new equipment and techniques can be employed in place of labor.