Question

5. Discuss what technology is and the constraints it imposes on productivity. What are fixed inputs? What are variable inputs?

Answer 1

Technology basically means the use of advanced and more effective methods of doing a work or using the latest techniques in practical life.

Technology poses se constraints on production. We can say this , because when looking how much to produce, we need to take into consideration the technology that we are using. If the technology is old and the machine works slowly , then we will be able to produce less as the process is time consuming.

If the technology is old, it might happen that the machine may not be as efficient as the latest machines and will then reduce our production capacity.

Fixed inputs are the inputs which cannot be varied in the short run. The quantity of these inputs is fixed in the short run.

Variable inputs are the inputs which can be varied in the short run according to the production required.