Growth of Global Internet Usage (1990-2020)

An innovation is considered a foundational driver of long-term economic growth when it has widespread applicability across many different industries, shows potential for continuous technical improvement, and enables the creation of numerous new products, processes, and business models. Which of the following historical innovations best exemplifies these characteristics?

An economy produces two goods: cars and wheat. The boundary of its production possibilities is bowed-outward from the origin. Initially, the economy is using most of its resources to produce wheat and only a few cars. To produce the 10th car, the economy must give up 100 bushels of wheat. Based on the shape of the production boundary, what is the most likely opportunity cost of producing the 100th car?

Evaluating the Impact of Foundational Innovations

Comparative Economic Impact of Foundational Technologies

Match each innovation with the description that best captures its broad economic impact.

Analyzing a Foundational Innovation

The invention of the mechanical clock is considered a foundational innovation with widespread economic impact primarily because it allowed factories to mass-produce goods more efficiently.

A foundational innovation is one that fundamentally transforms an economy by having widespread applicability across many different industries, showing potential for continuous improvement, and enabling the creation of numerous new products and processes. Which of the following historical innovations had the most limited applicability outside of its primary industry?

Evaluating a Hypothetical Technology

Analysis of a 20th Century Foundational Innovation