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 demonstrates that capital can be a complement for labor rather than a substitute. While ATMs automated certain tasks, they also allowed banks to operate more branches, which in turn increased the demand for bank tellers to provide a broader range of customer services. This shows how technological innovation can change the nature of jobs and create new opportunities for employment, rather than simply replacing workers.

The Case of ATMs and Bank Tellers Illustrates That