Read the following passage and answer the items that follow. Your answers to these items should be based on the passage only.
Passage-1
While some level of worker displacement is inevitable for those unable to align with shifting skill requirements in the age of Artificial Intelligence (AI), the scale of this displacement is shaped by the interplay between displacement effects and productivity gains. For instance, in highly demand-elastic markets, the "reinstatement effect" has historically acted as a counterbalance against the displacement effect caused by automation. Technological advancements in markets with unmet demand often give rise to auxiliary tasks where labour maintains a competitive edge. Such tasks not only enhance productivity but also reinstate labor into a broader spectrum of roles, thereby altering the task composition of production in labor's favor.

Based on the above passage, the following assumptions have been made:
1. The skills required for "auxiliary tasks" created by new technologies are generally less complex and more readily acquired by displaced workers than the skills made obsolete.
2. The "broader spectrum of roles" into which labor is reinstated due to auxiliary tasks offers long-term job security and career progression.

Which of the assumptions given above is/are valid?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question

Read the following passage and answer the items that follow. Your answers to these items should be based on the passage only.
Passage-1
While some level of worker displacement is inevitable for those unable to align with shifting skill requirements in the age of Artificial Intelligence (AI), the scale of this displacement is shaped by the interplay between displacement effects and productivity gains. For instance, in highly demand-elastic markets, the "reinstatement effect" has historically acted as a counterbalance against the displacement effect caused by automation. Technological advancements in markets with unmet demand often give rise to auxiliary tasks where labour maintains a competitive edge. Such tasks not only enhance productivity but also reinstate labor into a broader spectrum of roles, thereby altering the task composition of production in labor's favor.

 Based on the above passage, the following assumptions have been made:
1. The skills required for "auxiliary tasks" created by new technologies are generally less complex and more readily acquired by displaced workers than the skills made obsolete.
2. The "broader spectrum of roles" into which labor is reinstated due to auxiliary tasks offers long-term job security and career progression.

Which of the assumptions given above is/are valid?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: The passage states that &ldquo;reinstatement effect has historically acted as a counterbalance against the displacement effect caused by automation&rdquo;. For the reinstatement effect to be a "counterbalance," the auxiliary tasks must be accessible to a significant portion of the displaced workforce. This assumes these new tasks don't demand skills that are equally or more difficult to acquire than those required by the jobs lost to automation.

Statement 2 is not correct: The passage speaks of reinstatement into roles and altering task composition. It doesn't make any assumptions about the long-term security or career progression within these new auxiliary roles specifically.

Artificial Intelligence and Labor Displacement

Impact of Technological Advancements on Labor Market

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M Question 1	⏱ 0
Read the following passage and answer the items that follow. Your answers to these items should be based on the passage only. Passage-1 While some level of worker displacement is inevitable for those unable to align with shifting skill requirements in the age of Artificial Intelligence (AI), the scale of this displacement is shaped by the interplay between displacement effects and productivity gains. For instance, in highly demand-elastic markets, the "reinstatement effect" has historically acted as a counterbalance against the displacement effect caused by automation. Technological advancements in markets with unmet demand often give rise to auxiliary tasks where labour maintains a competitive edge. Such tasks not only enhance productivity but also reinstate labor into a broader spectrum of roles, thereby altering the task composition of production in labor's favor. Based on the above passage, the following assumptions have been made: 1. The skills required for "auxiliary tasks" created by new technologies are generally less complex and more readily acquired by displaced workers than the skills made obsolete. 2. The "broader spectrum of roles" into which labor is reinstated due to auxiliary tasks offers long-term job security and career progression. Which of the assumptions given above is/are valid? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

Artificial Intelligence and Labor Displacement

Impact of Technological Advancements on Labor Market

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