Question

If part of an assembly for automobiles is automated, then demand for automobile workers will _______________ .

Answer 1

Answer:

Demand for automobile workers will fall.

Explanation:

Companies are always looking for ways to reduce costs in the production profits, in order to raise revenue and profit.

Workers are form of factor of production known as labor, while machines, which make automation posssible, are another form of factor of production, known as capital.

If employing machines to automate the production process becomes cheaper than hiring workers, then, the firm will use more machines and hire less workers. This is simply because using machines is cheaper, and will likely raise profits.