Question
Assume that, in automobile manufacturing, one worker is required to supervise two robots. Robots cannot work on their own and workers cannot do the robots'
Assume that, in automobile manufacturing, one worker is required to supervise two robots. Robots cannot work on their own and workers cannot do the robots' job. The government would like to increase employment in manufacturing and so adds a 20% tax on all robots. This will:
A. Decrease the number of workers in automobile manufacturing.
B. Have no effect on the number of workers in automobile manufacturing.
C. Increase the number of workers in automobile manufacturing.
D. The effect on the number of workers in automobile manufacturing would depend on the sizes of the substitution and output effects.
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