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

Question

​Technological advancement creates unemployment in firms that shut down or labor that is laid off.Wealth in this case isA) ​Destroyed,since firms are shutting down and production of certain goods and services decreasingB) Created,since the dislocated labor and resources are absorbed by new firms created through the technological innovation,moving them to higher value useC) Destroyed,since technological progress is leading to higher unemploymentD) ​None of the above

Alonka Dobrodieieva · Accepted Answer

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.

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