Question

How is technology an economic challenge?

Answer 1

One the challenge that economics deals with is scarcity i.e. economics tries to address the problem of scarcity by ensuring that the scarce resources are utilised in the most optimal manner. Technology is one such resource that is scarcely available . Not every economy has access to technology and those economies that do have access to technology do not have large technological resources are their disposal. Technology is scarce resources as it requires economic resources such as capital , labor , raw materials to develop and these resources are scarcely available. Thus technology is subject to various resource constraints and thus it has to be used optimally and therefore it is an economic challenge.