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Impact of Technology on Labor Demand
easy

Which of the following statements accurately describe the impact of technology on labor demand? Select all that apply.

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Choose the Best Answer

A

Increased productivity per worker typically leads to a higher demand for labor.

B

Technology always replaces unskilled labor, resulting in fewer job opportunities.

C

An increase in the marginal revenue product can incentivize companies to hire more workers.

D

Technological advancements can lead to higher wages due to increased productivity.

E

The introduction of technology has no effect on the overall labor market.

Understanding the Answer

Let's break down why this is correct

Answer

Technology has a big impact on labor demand by changing the types of jobs available and the skills needed for those jobs. When new machines or software are introduced, some jobs may become easier or even disappear, while new jobs that require different skills can emerge. For example, when factory automation became common, fewer workers were needed for assembly lines, but there was a higher demand for workers who could manage and maintain those machines. This means that as technology evolves, workers must adapt by learning new skills to stay relevant in the job market. Overall, technology can create opportunities but also challenges for workers.

Detailed Explanation

Other options are incorrect because Some think that if workers are more productive, companies will need more workers; It's a common belief that technology always takes away jobs for unskilled workers.

Key Concepts

Impact of Technology on Labor Demand
Marginal Revenue Product
Wages in a Competitive Labor Market
Topic

Impact of Technology on Labor Demand

Difficulty

easy level question

Cognitive Level

understand

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