Economics
Economics
4th Edition
ISBN: 9781464143847
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
Question
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Chapter 24, Problem 1BCQ
To determine

The technological progress of a modern jet airliner compared to airliners made in the times of 1960s.

Concept Introduction:

Economic Growth: The economy is said to be growing when there is an increase in the production of goods and services per head, when a certain time period is compared to another time period.

Expert Solution & Answer
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Explanation of Solution

  • In the given case, with the technical progress the fares have reduced to one-third compared to fares of 1960s, after making adjustments for inflation.
  • The modern jet airline uses less than one-third of fuel used in airlines of 1960s, so it can be said that modern airlines are comparatively more fuel efficient.
  • Various variabilities are also there in the engine as modern engines are high-bypass engine, with engine there is also change in the usage of raw material and because of this the airframes are comparatively lighter.
  • However, modern airways do pretty much the same thing compared to the airliners of 1960s but there is a huge difference in technology, which is not viewed by the people.

Conclusion:

Thus, people do not view difference in technology and think that there is no technological progress.

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