Question

Which of the following statements is NOT CORRECT?

The implementation of the new technology displaces a number of workers from their jobs both in the short and long run

Real profit is the share of output per worker that is claimed by the employer through the markup

Adjustment gap is the lag between some outside change in labor market conditions and the movement of the economy to the neighborhood of the new equilibrium

Long-run equilibrium in the labor market is when the number of firms is constant

Answer 1

The implementation of new technology will not displace the number of workers from their jobs in both short run and long run. New technology will help to improve the efficiency and productivity. We know that after some training with the new technology, we should be able to increase your productivity and increase your skills at the same time. Ultimately this helps the organization and the individual. New technology to some extent displace workers but not in totality.

The correct option is (a).

The implementation of the new technology displaces a number of workers from their jobs both in the short and long run.

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