II. Are sentences below “Right” or “Wrong”? If there is not enough information to answer, choose “Doesn’t say”.

1. The political right is sure that a certain amount of inequality and poverty is the inevitable price paid for an efficient growing economy.

A. Right B. Wrong C. Doesn’t say

2. Economists have a major role to play in the analysis of inequality.

A. Right B. Wrong C. Doesn’t say

3. Relative poverty is a far more stable concept.

A. Right B. Wrong C. Doesn’t say

III. The mistakes in the sentences below have been underlined. Write the corrections in the spaces provided.

1. Economists therefore cannot to settle the debate between left and right.

2. The standard of living considered be acceptable of society will differ over time.

3. Inequality is one of most contentious issues in world of economics and politics.

4. Hence an individual what is unable to attain this reasonable and acceptable standard is considering poor.

1. _____________________________________________

2. _____________________________________________

3. _____________________________________________

4 . _____________________________________________

Technology and employment

Does Technological Progress Create or Destroy Jobs?

1. Does technological progress destroy jobs? The obvious answer may seem to be yes. After all, new technology often involves machines taking over jobs that were previously done by people.

2. There is another view, however. This argues that a failure to introduce new technology and ultimately to remain competitive will offer an even worse long-term employment problem. Markets, and hence employment, will be lost to more efficient competitors.

3. The relative merits of each of these views are difficult to assess, since they depend greatly upon the type of technology, its organisation in the workplace and the market within which it is located. The diagram isolates four stages in the effects of new technology on jobs.

(3) Servicing

(4) Market expansion

F our effects of new technology on employment

Source: A. Rajan and G. Cooke. “The impact of IT on employment”. (National Westminster Bank Quarterly Review. August 1986).

Stage (1) Design and installation

Here labour requirements grow as first designers and then construction workers are employed. As construction/installation is completed, employment from this source will then disappear.

Stage (2) Implementation

Here labour requirements decline, especially if the technology is concerned with improving existing processes rather than creating new products.

Stage (3) Servicing

Maintenance and repair may have positive employment effects. This may gradually decrease over time as “teething troubles” are eliminated, or it may increase as the stock of initially new machines begins to grow older.

Stage (4) Market expansion

This represents the long-term impact of technology on employment levels as the improved and/or cheaper products lead to more sales.

4. The optimistic view holds that, historically, technology has generated more jobs than it has destroyed. Total employment today is much higher than a hundred years ago, and yet technological progress has allowed many goods and services to be produced with far fewer workers. What has happened is that increased output has more than compensated for the growth in labour productivity. There is no reason, say the optimists, why this process should not continue.

5. The pessimists, however, are less certain about the potential employment benefits of new technology. Even in growth industries, such as pharmaceuticals, electronics, optical technology and high-value plastics, there has been a decline in employment. Except in a few parts of the world where a rapid growth in exports has allowed a huge expansion of output (e.g. certain south-east Asian countries), output growth in high-tech industries has not kept pace with the growth in labour productivity.

I. Which part of the text reports on these items?

A. The outcome of new technology is risky.
B. The negative influence of technological race on employment.
C. Technological changes improve the potential employment benefits.
D. Technology failure and the nature of employment.
E. How are new technology and jobs shaping their dependence?