3.5 - Issues: Robotics + AI Flashcards
1
Q
What are the potential micro effects of robotics + AI?
A
Productivity, cost + profit effects
Harms supply + demand of labour
Consumer welfare
2
Q
How will robotics affect productivity, costs + profit?
A
Improved productivity
Lowers Variable + Total costs
Improved profitability
3
Q
How will robotics affect the demand for labour?
A
Demand contracts
Labour Capital substitution
Less demand for human capital
4
Q
How will robotics affect the labour supply?
A
Potential wage motive
Workers may feel devalued
5
Q
How will robotics affect consumer welfare?
A
Productivity brings lower prices
Higher output, lower price
Higher real disposable incomes
