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Economics glossary · Markets

Technology

What technology means in economics, as one of factors that shift supply, with an example and a question to test yourself.

Definition
Technology
Technology is the methods used to turn inputs into output; an improvement lowers the cost of each unit, so a greater quantity is supplied at every price.
Example

Can you think of an example of technology?

Test yourself

Can you name the six factors that shift supply?

Learn it properly: the module

Also in: The demand for labour, Why wages differ between jobs

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