📚 Learning Guide
Understanding Labor Demand Shifts
easy

How does technological change typically affect the demand for labor in a given industry?

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Learning Path

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Choose the Best Answer

A

Increases demand for low-skilled labor

B

Decreases demand for high-skilled labor

C

Increases demand for high-skilled labor

D

Has no effect on labor demand

Understanding the Answer

Let's break down why this is correct

Answer

Technological change usually affects the demand for labor in an industry by either increasing or decreasing the need for workers. When new technology is introduced, it can make tasks easier and faster, which might lead to a reduced need for some types of jobs, like manual labor. For example, if a factory installs robots to assemble products, it may need fewer assembly line workers. However, this same technology can create new jobs, such as maintenance or programming for the robots, which can increase demand in other areas. Overall, while some jobs may disappear, technology often leads to shifts in the types of jobs available rather than a simple reduction in the number of jobs.

Detailed Explanation

When technology changes, it often needs workers with special skills. Other options are incorrect because Some might think that technology creates more low-skilled jobs; It might seem that technology would reduce the need for high-skilled workers.

Key Concepts

technological change
Topic

Understanding Labor Demand Shifts

Difficulty

easy level question

Cognitive Level

understand

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