(Last Word) The case of ATMs and bank tellers illustrates that
A) capital is primarily a substitute for labor.
B) capital is, overall, a complement for labor, not a substitute.
C) capital and labor are almost always used in fixed proportions.
D) technological innovation is generally detrimental to employment.

Question

Quizplus · Accepted Answer

The case of ATMs and bank tellers shows that capital (in this case, the ATM) can complement labor by making it easier and more efficient for bank tellers to do their job. While some jobs may be eliminated due to technological innovation, overall, it can create new jobs and improve productivity. Therefore, capital is not solely a substitute for labor.

(Last Word) the Case of ATMs and Bank Tellers Illustrates