Final answer:
Technological progress enables an increase in efficiency by producing more output without using more inputs. It contributes to economic growth and enhances a country's competitive advantage.
Step-by-step explanation:
Technological progress refers to the improvement in technology that allows for more output to be produced without using more inputs. This increase in efficiency is often achieved through the invention and innovation of new technologies, which enhance the productivity of a company or an economy. For example, if a company invents a new technology that enables them to produce more goods with fewer workers and lower costs, they can increase their output without increasing their input.
Technological progress is crucial for economic growth as it allows for the production of more goods and services, leading to higher levels of productivity. It also helps countries to become more competitive in the global market by improving their efficiency and capacity to produce. Along with the adoption of new technologies, countries with effective institutions for training workers and developing better machines can maximize the benefits of technological progress. In summary, technological progress enables an increase in efficiency by producing more output without using more inputs. This advancement in technology contributes to economic growth and allows countries to enhance their competitive advantage.