What immediate effect does technology usually have on production?

Study for the SQA National 5 Economics Exam. Engage with flashcards and multiple choice questions, each featuring hints and comprehensive explanations. Prepare confidently for your exam!

The immediate effect of technology on production often involves enhancements in productivity. This occurs because technological advancements can introduce more efficient processes, automate manual tasks, and improve the overall quality of goods produced. When technology is adopted, it allows businesses to produce more output in the same amount of time, or the same amount of output with fewer resources, ultimately leading to increased efficiency.

This increase in productivity can lead to a greater supply of goods and services available in the market. Furthermore, higher productivity levels can facilitate the scaling of operations, enabling businesses to meet demand more effectively. Other options may suggest negative impacts on costs or supply, which are typically not the immediate outcomes of integrating technology into production processes.

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