📚 Learning Guide
Impact of Technology on Labor Demand
easy

How does automation typically affect labor demand in various industries?

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Choose the Best Answer

A

Increases demand for low-skilled labor

B

Decreases demand for high-skilled labor

C

Increases efficiency and may reduce overall labor demand

D

Has no effect on labor demand

Understanding the Answer

Let's break down why this is correct

Answer

Automation usually changes the demand for workers in different industries by making some jobs easier and faster while reducing the need for certain types of labor. For example, in manufacturing, machines can take over repetitive tasks like assembly line work, which means fewer people are needed for those jobs. However, this doesn't always mean fewer jobs overall; new roles may be created for people to manage, maintain, or program these machines. In the service industry, automation can improve efficiency, but it might also replace jobs like cashiers with self-checkout machines. Overall, while some jobs may disappear, others can emerge, leading to a shift in the types of skills workers need.

Detailed Explanation

Automation helps machines do tasks faster and better. Other options are incorrect because Some might think that machines create more jobs for low-skilled workers; It's a common belief that automation takes away jobs from high-skilled workers.

Key Concepts

automation
Topic

Impact of Technology on Labor Demand

Difficulty

easy level question

Cognitive Level

understand

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