📚 Learning Guide
Labor Demand Dynamics
easy

How does technological change typically affect labor demand in an industry?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

It always increases demand for labor

B

It tends to decrease demand for low-skilled labor

C

It has no effect on labor demand

D

It increases demand for all types of labor

Understanding the Answer

Let's break down why this is correct

Answer

Technological change usually affects labor demand in an industry by either increasing or decreasing the need for workers. When new technology is introduced, it can make certain jobs easier or faster, which might mean fewer workers are needed. For example, if a factory starts using robots to assemble products, it may need fewer assembly line workers. However, this same technology can create new jobs, like those for engineers or technicians who maintain the robots. Overall, while some jobs may be lost, new opportunities can also arise, showing how technology can reshape the workforce.

Detailed Explanation

Technological change often means machines can do tasks that low-skilled workers used to do. Other options are incorrect because Some people think technology always creates more jobs; It's a common belief that technology has no impact on jobs.

Key Concepts

technological change
Topic

Labor Demand Dynamics

Difficulty

easy level question

Cognitive Level

understand

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