📊 GMAT Exam Prep

Although many economists once believed that technological innovation primarily led to job displacement, recent research suggests a more nuanced picture. While some specific roles may indeed become obsolete, the overall effect of technological advancement on the labor market tends to be a net creation of new jobs, often in unforeseen sectors, and a re-skilling of the workforce towards higher-value activities. This transformation, however, is rarely immediate or evenly distributed across all demographics. Based on the passage, which of the following can be inferred about the impact of technological innovation on the labor market?

A Technological innovation always creates more jobs than it eliminates.
B The benefits of technological advancement in the labor market are universally experienced.
C Economists now uniformly agree that technological innovation is beneficial for job creation.
D The transition to a workforce focused on higher-value activities due to technology is a complex process.

✓ Correct Answer: Option D

The passage describes a 'transformation' involving 're-skilling' and states it's 'rarely immediate or evenly distributed.' This implies the process is not simple or straightforward, thus complex.

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