Question

With the evolution of the role of technology, why do major economic variables like perceived value, willingness to pay, human roles in production and usages, human engagement in usages, production and consumption level, revenue, and jobs keep changing? Take the example of the evolution of transportation and healthcare service to clarify your explanations. How will self-driving cars likely cause discontinuity in the trends of those major variables in the transportation industry?

Answer 1

When there is a technical evolution with rapid technological development, the valuation of economic variables is decline slowly. here technology has been taken as a substitute or replacement of factors of production. Among various economic variables, the First one is perceived value, when we implement the traditional composition of factors of production the value of the product been determined. The introduction of technology replace any of the factors and that decrease the perceived value. it has an impact on the willingness to pay as the technology can enable the unit to produce more in quantity so the valuation of the at the product in terms of consumer point is comparatively low. The technology is one of the effective factors to replace human involvement in production and usage by making the process more machine-oriented. This will also impact the production as the product can be held in its optimum capability and it increases the consumption due to more supply of products at low price. When it comes to revenue generation with the help of technology it has a positive impact due to the optimum level of production. In the case of job creation, technology has a negative impact on job creation and a greater role in increasing unemployment.

Taking example of transportation before in a manual car we need to have a driver to run it. but when the auto driven car been introduced, that reduces the demand for a skilled driver. so her technology has a negative impact on job security. if we will take the example of the healthcare sector it has a complex role of technology. for example any kind of test we need a laboratory to expertize and different sections for different tests. but due to technological advancement, the whole range of tests can be performed in less time with more accuracy. so people will prefer high technology enables equipment which are more reliable with less defect then the manual tests.