Explaining Differential Technology Adoption
Historians have noted that several early steam engine designs, which were highly effective at replacing manual labor for tasks like pumping water out of mines, were known in both 18th-century Britain and France. However, these engines were widely and rapidly adopted in Britain while seeing very limited use in France during the same period. Based on an economic model where technology choices are driven by the costs of production inputs, provide a concise explanation for this difference in adoption rates.
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Ch.2 Technology and incentives - The Economy 2.0 Microeconomics @ CORE Econ
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An inventor in the 18th century develops two new weaving looms. Loom X is a simple, low-cost machine that requires significant manual labor to operate but uses very little coal. Loom Y is a complex, expensive machine that requires very little manual labor but consumes a large amount of coal. Historical records show that at the time, wages for workers were much higher in Britain than in France, while the cost of coal was significantly lower in Britain.
Which of the following statements best evaluates the likely adoption of these looms in Britain versus France, based on an economic explanation of technological change?
Predicting Technological Innovation
Evaluating Historical Narratives of the Industrial Revolution
Explaining Differential Technology Adoption
If 18th-century France had possessed more ingenious inventors than Britain, the Industrial Revolution would have likely begun in France, even if French wages were low and coal was expensive compared to Britain.
Match each component of the economic explanation for the Industrial Revolution with its correct description.
Based on the economic model explaining the timing and location of the Industrial Revolution, arrange the following statements into the correct causal sequence.
According to the economic model explaining the Industrial Revolution, the high cost of labor relative to the cost of energy in 18th-century Britain meant that firms had a strong profit motive to invest in technologies that were ______-saving.
The Case of the Unadopted Engine
An economic historian presents the following simplified data for two countries in the 18th century:
Country Average Daily Wage for a Laborer Cost of 1 Million BTUs of Energy (from coal) Country A 3 shillings 10 shillings Country B 12 shillings 5 shillings A new steam-powered machine is invented that can do the work of ten laborers but consumes a large amount of coal. Based on the economic incentives created by these cost structures, which of the following conclusions is most plausible?
Role of Relative Input Prices in England's Industrial Revolution