Part 1
TRUE OR FALSE: The rejection of beneficial technologies is probably caused because the population is not economically rational; therefore, it can’t understand the social benefits of technological innovation.
False, conservatism and rationality are not always mutually exclusive.
Name 5 key political economy factors that effect the resistance to change in society. Which one can lead to environmental damage?
1. - Employment loss and gain
- Capital losses
- Non pecuniary losses
- Human Capital
- Externalities
2. Externalities
What are "so-so technologies?
This term describes technologies that do not significantly increase productivity but are widely adopted because they reduce labor costs.
TRUE OR FALSE: Structural constraints in economics derive from the biology to allude to genetic material transmited in packages; therefore, we could say that all features on a system develop because all of them increase fitness.
False, certain features develop not because they increase fitness but because they are correlated with other developments.
This famous British economist raised concerns in the 19th century about labor-saving machinery leading to widespread unemployment, sparking the "Machinery Question."
Who is David Ricardo?
Who is John Maynard Keynes?
This economist predicted "technological unemployment" and foresaw the disruptive effects of new technologies on labor.
Give an example of a stochastic shock and why?
American Industrial Capitalism caused by improvements in the technology of interchangeable parts and modern hierarchical business corporations.
This term refers to the difficulty of converting capital assets once they have been shaped for a specific use, limiting their adaptability to new technological conditions.
"putty-clay"
What are "the United States and China"?
According to Acemoglu, AI development is largely dominated by companies from these two countries.
What is the name of the effect when a production technology molds its own environment to preserve the status quo?
Cross-technique spillover effects.
This specific production method, associated with artisans renting space and working independently without hierarchy, persisted well into the 19th century, despite rising factory systems during the British Industrial Revolution.
Workshop system
What are "echo chambers"?
Social media platforms like Facebook use AI to create these digital spaces that reinforce users' pre-existing beliefs.
What factors best show or “sum up” the behaviour of the market?
Pure market, decision rule, and voting rule.
The text suggests that physical capital is rarely resistant to new technology, despite potential losses. Why might owners of capital goods be more willing to adopt new technology compared to labor, and how do capital markets mitigate losses associated with technological depreciation?
- Capital goods can be bought and sold.
- Efficient capital markets
- Less direct impact on lifestyle
- New technology means new profits
- Shift in investment focus
Who are the "Luddites"?
This group from the 19th century resisted automation in the textile industry, fearing job loss from technological advancements.