Which term refers to the situation in which it is easier to use machines and technology than to use labour?

Question

Quizplus · Accepted Answer

The term that refers to the situation in which it is easier to use machines and technology than to use labour is the substitution effect. This occurs when a factor of production, such as labour, becomes more expensive or less productive relative to another factor, such as machines, leading firms to substitute the less costly or more productive option.

Which Term Refers to the Situation in Which It Is