Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It increases demand as productivity rises
B
It decreases demand due to reduced need for labor
C
It has no effect, as technology is independent of labor demand
D
It only affects skilled labor demand, leaving unskilled labor unchanged
Understanding the Answer
Let's break down why this is correct
Answer
When new technology is introduced in a competitive market, it often changes how work is done and can reduce the demand for unskilled labor. This happens because machines or software can perform tasks faster and more efficiently than people, especially for jobs that require basic skills. For example, if a factory starts using robots to assemble products, it may need fewer workers to do the same job. As a result, unskilled workers may find it harder to get jobs, since employers prefer to invest in technology that can save time and money. Overall, while technology can create new opportunities, it often leads to fewer positions for unskilled labor in the long run.
Detailed Explanation
New technology often makes work faster and easier. Other options are incorrect because Some might think that machines replace workers completely; It's a common belief that technology doesn't change job needs.
Key Concepts
Impact of Technology on Labor Demand
Marginal Revenue Product
Productivity
Topic
Impact of Technology on Labor Demand
Difficulty
medium level question
Cognitive Level
understand
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