Suppose that new high-technology farming equipment is developed. These new machines are substitutes for low-income workers such as farm laborers, but they are complements for high- income workers such as farm technicians and farm owners. This new technology will _______ employment and _______ wages for high-income workers.

Question

Quizplus · Accepted Answer

The new technology acts as a substitute for low-income workers, potentially reducing their employment as machines replace their labor. However, for high-income workers like farm technicians and owners, the technology is a complement, enhancing their productivity and value. This typically leads to increased employment and higher wages for these high-income workers, as their skills are in greater demand to manage, maintain, or work alongside the new technology.

Suppose That New High-Technology Farming Equipment Is Developed