📚 Learning Guide
Impact of Technology on Labor Demand
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The introduction of new technology always leads to an increase in the overall demand for labor in all sectors of the economy.

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Learning Path

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A

True

B

False

Understanding the Answer

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Answer

The introduction of new technology can significantly change how work is done, often leading to an increase in labor demand in various sectors. When a new technology is introduced, it can create new jobs that didn't exist before, as companies need people to operate, manage, and maintain this technology. For instance, when the internet became widely used, it not only created jobs in tech companies but also increased the need for web designers, digital marketers, and IT support across many industries. Additionally, technology can make processes more efficient, which might help businesses grow and hire more workers to meet increased demand for their products or services. Therefore, while some jobs may be replaced by machines, the overall effect of new technology is often an increase in job opportunities in many areas.

Detailed Explanation

New technology can change how work is done. Other options are incorrect because Many people think new technology always means more jobs.

Key Concepts

Impact of Technology on Labor Demand
Marginal Revenue Product
Perfectly Competitive Labor Market
Topic

Impact of Technology on Labor Demand

Difficulty

medium level question

Cognitive Level

understand

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