Asked by Amarelis Gonzalez on Sep 23, 2024
Verified
Technological advancement creates unemployment in firms that shut down or labor that is laid off.Wealth in this case is
A) Destroyed,since firms are shutting down and production of certain goods and services decreasing
B) Created,since the dislocated labor and resources are absorbed by new firms created through the technological innovation,moving them to higher value use
C) Destroyed,since technological progress is leading to higher unemployment
D) None of the above
Technological Advancement
The process of innovation and improvement in technology, leading to the development of new products or the enhancement of existing ones.
Higher Value Use
The employment of resources or assets in a manner that maximizes their value or return, often resulting in the most efficient and profitable outcome.
- Identify the potential wealth creation or destruction due to technological advancement.
Verified Answer
AD
Alonka Dobrodieieva3 days ago
Final Answer :
B
Explanation :
Technological advancement may create unemployment in certain firms, but it also creates new opportunities and demand for skilled labor in industries that emerge due to technological innovation. In the long run, the dislocated labor and resources can be absorbed by new firms that create higher-value products or services. This can lead to an increase in economic productivity and wealth creation in the economy. Therefore, the correct answer is B.
Learning Objectives
- Identify the potential wealth creation or destruction due to technological advancement.