📚 Learning Guide
Impact of Technology on Labor Demand
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How does automation typically affect labor demand in various industries?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

It always increases job opportunities

B

It leads to job displacement in certain sectors

C

It has no effect on labor demand

D

It only affects low-skilled jobs

Understanding the Answer

Let's break down why this is correct

Answer

Automation usually changes the way businesses operate, which can impact labor demand in different ways. When tasks are automated, machines or software can do jobs that people used to do, often making processes faster and cheaper. For example, in a factory, robots might take over assembly line work, leading to fewer jobs for assembly workers. However, this can also create new jobs in areas like programming and maintenance of the machines, meaning that while some jobs may be lost, new opportunities may arise in other fields. Overall, automation can shift the types of jobs available rather than just reducing the total number of jobs.

Detailed Explanation

Automation can replace some jobs, especially in industries like manufacturing. Other options are incorrect because Some people think automation always creates more jobs; It's a common belief that automation has no impact on jobs.

Key Concepts

automation
job displacement
Topic

Impact of Technology on Labor Demand

Difficulty

medium level question

Cognitive Level

understand

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