Which of the following best describes the effect of technological change on labour?
A) Technological change causes unemployment in the short run and lower incomes in the long run.
B) Technological change causes unemployment in the short run and higher incomes in the long run.
C) Technological change causes unemployment in the long run and higher incomes in the short run.
D) Technological change causes unemployment in the long run and lower incomes in the short run.

Question

Which of the following best describes the effect of technological change on labour?  
A) Technological change causes unemployment in the short run and lower incomes in the long run. 
B) Technological change causes unemployment in the short run and higher incomes in the long run. 
C) Technological change causes unemployment in the long run and higher incomes in the short run. 
D) Technological change causes unemployment in the long run and lower incomes in the short run.

Quizplus · Accepted Answer

Technological change can lead to displacement of workers in the short run, as machines and automation take over certain tasks. However, in the long run, technological change usually leads to new job opportunities and higher productivity, which can result in higher incomes for workers. This is known as creative destruction, where old industries and jobs may become obsolete, but new ones emerge in their place.

Which of the Following Best Describes the Effect of Technological