According to an article on Barrons.com, "Investment firms are starting to use Al [artificial intelligence] to execute trades [of stocks, bonds, and other financial securities), manage portfolios, and provide personalized service to their clients." The article notes that other financial firms, including banks, insurance companies, are using Al to decrease costs and increase the accuracy of compliance with government regulations, and to "free employees to work on more valuable jobs." Source: Scott Likens, "How Artificial Intelligence is Already Disrupting Financial Services" Barrons.com, May 16, 2019. Does the use of Al increase or decrease labor productivity? Increase, because the use of Al represents technological advance. Decrease, because the use of Al increases the stock of capital Increase, because the use of Al raises investment returns. O Decrease, because the use of Al reduces the number of work hours in the economy.

According to an article on Barrons.com, "Investment firms are starting to use Al [artificial intelligence] to execute trades [of stocks, bonds, and other financial securities), manage portfolios, and provide personalized service to their clients." The article notes that other financial firms, including banks, insurance companies, are using Al to decrease costs and increase the accuracy of compliance with government regulations, and to "free employees to work on more valuable jobs." Source: Scott Likens, "How Artificial Intelligence is Already Disrupting Financial Services" Barrons.com, May 16, 2019. Does the use of Al increase or decrease labor productivity? Increase, because the use of Al represents technological advance. Decrease, because the use of Al increases the stock of capital Increase, because the use of Al raises investment returns. O Decrease, because the use of Al reduces the number of work hours in the economy.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter21: Getting Employees To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 10MC

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