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The Labor Market – End of Chapter Problem The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMS replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMS shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service. When the use of ATMS became more prevalent, reducing the banks' overall costs, the was dominant. On net, labor and capital would be considered in this industry. substitutes complements

The Labor Market – End of Chapter Problem The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMS replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMS shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service. When the use of ATMS became more prevalent, reducing the banks' overall costs, the was dominant. On net, labor and capital would be considered in this industry. substitutes complements

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter26: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 10CQ
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The Labor Market End of Chapter Problem - The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMS replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMS shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service. When the use of ATMS became more prevalent, reducing the banks' overall costs, the was dominant. On net, labor and capital would be considered in this industry. substitutes complements
Transcribed Image Text:The Labor Market End of Chapter Problem - The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMS replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMS shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service. When the use of ATMS became more prevalent, reducing the banks' overall costs, the was dominant. On net, labor and capital would be considered in this industry. substitutes complements
The Labor Market – End of Chapter Problem The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMS replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMS shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service. When the use of ATMS became more prevalent, reducing the banks' overall costs, the was scale effect dominant. On net, labor and capital would be considered in this i substitution effect
Transcribed Image Text:The Labor Market – End of Chapter Problem The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMS replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMS shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service. When the use of ATMS became more prevalent, reducing the banks' overall costs, the was scale effect dominant. On net, labor and capital would be considered in this i substitution effect
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