Before ATMs, the Average Bank Branch Employed 20 Employees; After

question 206

Multiple Choice

Before ATMs, the average bank branch employed 20 employees; after ATMs, the average branch employed 13 employees, but banks have opened more branches. These developments suggest that

• A) ATMs are purely substitutes for labor in banking.
• B) labor and ATMs are substitutes in some bank functions, complements in others.
• C) ATMs are purely complements for labor in banking.
• D) labor and ATMs are neither substitutes nor complements in banks’ various functions.

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Definitions:

Salary Allowance

A specific amount of money allocated regularly to employees in addition to their regular salary, often for specific purposes such as travel or housing.