The following text discusses economics.
Path dependence describes how historical events constrain later possibilities. The QWERTY keyboard layout, designed partly to prevent typewriter jamming, persists despite technology that makes such concerns obsolete. Once adopted, switching costs grew prohibitive: training, compatibility, and standardization created "lock-in." Economists debate whether such lock-ins are truly inefficient—users may prefer consistency over theoretical optimality. But path dependence reminds us that current arrangements are not necessarily optimal; they may simply be what happened first.
What does the QWERTY example illustrate about path dependence?
Early technological choices can persist long after original reasons become obsolete
Modern keyboards are optimally designed
Switching costs are always minimal
All technological standards are equally efficient
Correct Answer: A
Choice A is the correct answer. The QWERTY layout "persists despite technology that makes such concerns obsolete"—the original jamming prevention reason no longer applies but the design persists.
- Evidence: Designed for obsolete reasons; persists through lock-in.
- Reasoning: History, not current need, explains current arrangement.
- Conclusion: Early choices can outlast their original rationale.
Choice B is incorrect because the text questions optimality. Choice C is incorrect because switching costs are "prohibitive." Choice D is incorrect because current arrangements "are not necessarily optimal."