When Robots Are Used to Replace Workers on a Factory

question 392

Multiple Choice

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

• A)will increase only if the company can increase the price of its product.
• B)is likely to increase.
• C)is likely to decrease.
• D)will not change.

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Definitions:

Regulated

subject to rules, standards, and guidelines set by governing bodies to control activities, processes, or industries for safety, fairness, or efficiency.

Economic Efficiency

Economic efficiency is a state where resources are allocated in such a way that maximizes the production of goods and services at the lowest cost, thereby optimizing societal welfare.

Demand Conditions

The various factors that influence the quantity of a product or service that consumers are willing and able to purchase.

Cost Conditions

Relate to the factors that influence the costs of production for goods and services, including material, labor, and overhead costs.