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Homework answers / question archive / 1)Does Bruno’s decision to use more robots than labour result in a fairer outcome? Discuss the concept of substantive judgement of fairness vs procedural judgement of fairness

1)Does Bruno’s decision to use more robots than labour result in a fairer outcome? Discuss the concept of substantive judgement of fairness vs procedural judgement of fairness

Economics

1)Does Bruno’s decision to use more robots than labour result in a fairer outcome? Discuss the concept of substantive judgement of fairness vs procedural judgement of fairness.

2) Consumer Save Score: 0 of 1 pt 10 of 10 (7 complete) HW Score: 68%, 6.8 of 10 pts Text Problem 1.5 Question Help The rent for 2-bedroom apartments in Detroit has fallen from an average of $796 in September 2014 to $717 in March 2015. Demand for 2-bedroom apartments in Detroit was falling during this period as well. This is hard to explain because the law of demand says that lower prices should lead to higher demand. Do you agree or disagree with this statement? A. Agree. This is hard to explain because a fall in prices should result in a higher quantity demanded. B. Disagree. A rightward shift of the demand curve would result in a lower price and a lower quantity demanded. c. Agree. This is hard to explain because a rise in prices should result in a higher quantity demanded, D. Disagree. A leftward shift of the demand curve would result in a lower price and a lower quantity demanded.

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1)Substantive Judgment of Fairness means that we can terminate an employee only when he is violating any rule or standard of a company. According to this judgment, it is not appropriate to terminate any employee without any misconduct. In this case, Bruno (employer) cannot terminate the existing employees because of replacing robots in place of labours. But he can surely use more robots in future and hire fewer labours.

For example: If an employer has some personal grudge with the employee and wants to fire the employee on this basis of his/her grudge, so this is the violation of the substantive judgment of fairness.

The procedural judgment of fairness means a fair procedure to be taken by an employer against the employee who violates the rule or did misconduct. The employer must do an investigation to find out the employees misconduct and notify him. After that, the employee should get the chance to put their points against the allegation. Then a proper decision should be taken and a written notification should be sent to the employee. The process by which a decision is made should always be fair.

For example: In a company, if B comes to the employer that A is harassing her and the employer without giving the opportunity to prove himself to A penalize him because of his previous misconducts is a violation of the procedural judgment of fairness.

A dismissal of an employee should not be done only with a fair reason but also with a fair procedure.

Most of the companies in future will be more dependent on robots than on labours due to following reasons:-

  • Robots can work reluctantly without any breaks. Hence, it will increase productivity.
  • Robots can work anywhere and in any environmental condition. They are more flexible.
  • Robots work without doing any mistakes.
  • Robots also improvise the quality of the product

But, putting robots in the place of labours does not always come handy,

  • Replacing actual humans with robots will lead to unemployment in the economy.
  • Robots cannot deal with the unexpected situations like humans.
  • The cost of maintaining is high because robots can malfunction anytime.
  • Robots cannot perform a task out of the box because of the absence of emotions.

If Bruno wants to use more robots than labour then it will help Bruno to increase productivity and reducing the cost of the product and overall help him to increase the profit. But it will result in an increase in the unemployment rate.  Hence, most of the current jobs will be replaced by robots in near future. But, new types of jobs will come into being. There will a gradual transition in the jobs that have already commenced in various sectors. The new generation needs to learn different new types of skillset to cope with the new era of robotics.

2)Law of demand says that there exist negative relationship between price and quantity demanded not demand which shows the movement along the demand curve.

If there is leftward shift in demand curve, it will reduce price as well as demand.

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