How do labor-saving technologies differ from labor-complementary technologies? Give an example of each
What will be an ideal response?
Labor-saving technology is a type of technology that can substitute for existing labor inputs, reducing the marginal product of labor. Labor-complementary technology is a type of technology that can complement existing labor inputs, increasing the marginal product of labor. Computers that displace workers on an assembly line in a factory are examples of labor-saving technology. A word-processing program is an example of a labor-complementary technology as it improves the productivity of secretaries or administrative assistants.
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Which of the following statements is correct?
A) The price level does not affect the level of real GDP demanded. B) The lower the price level, the more the aggregate demand curve shifts rightward. C) The lower the price level, the greater the quantity of real GDP demanded. D) The higher the price level, the more the aggregate demand curve shifts rightward. E) The lower the price level, the more the aggregate demand curve shifts leftward.
The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles
a. What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b. Who has the comparative advantage in writing magazine articles? c. According to their comparative advantages, who should write books and who should write magazine articles?
A coupon bond that has no maturity date and no repayment of principal is called a
A) consol. B) cabinet. C) Treasury bill. D) Treasury note.
For a monopoly market, if the Lerner Index is 2, then
A) the monopoly is maximizing its profit. B) the price elasticity of demand is -2. C) the price elasticity of demand is -0.5. D) None of the above.