Robots are Pouring Drinks in Vegas

EconEye Admin

3 years ago

Check-in kiosks have replaced people at hotel front desks. Robots serve food and pour drinks. Technology won’t eliminate all jobs, but people need to move to occupations that are more highly skilled. —npr.org

Answer the following questions to check your understanding of the story.

How does the use of the technology described in the news clip change the market for low-skilled labor?

Technology is a ____________ low-skilled labor, and using new technology ____________.

a) complement of; decreases the demand for low-skilled labor and lowers the wage rate

b) substitute for; increases the supply of low-skilled labor and lowers the wage rate

c) substitute for; decreases the demand for low-skilled labor and lowers the wage rate

d) complement of; increases the demand for low-skilled labor and raises the wage rate

Wrong! - What is a substitute? What is a complement? Why would the increased use of check-in kiosks and robots that serve food and pour drinks change the demand for low-skilled labor or the supply of low-skilled labor?

Correct! - The check-in kiosks and robots that serve food and pour drinks are a substitute for low-skilled labor because hotels and restaurants use the new technology in place of low-skilled labor. As more hotels and restaurants use the new technology, the demand for low-skilled labor decreases, and the wage rate falls.

Why do people “need to move to occupations that are more highly skilled”?

Occupations that are “more highly skilled” are ______________ new technology, and as the use of new technology increases ____________.

a) substitutes for; the demand for high-skilled labor decreases

b) complements of; the demand for high-skilled labor increases

c) substitutes for; the supply of high-skilled labor increases

d) complements of; the supply of high-skilled labor decreases

Wrong! - What is a substitute? What is a complement? Does new technology replace high-skilled workers or do high-skilled workers use the new technology?

That's Right! - Occupations that are “more highly skilled” work with the new technology. New technology and high-skilled workers are complements. As the use of new technology increases, the demand for high-skilled labor increases.

Share this: