medium · SAT Reading & Writing
Economist Kenji Sato suggests that the 'productivity paradox'—the idea that increased investment in technology does not always yield a corresponding rise in output—is often a matter of timing. Sato argues that firms frequently experience a 'learning dip' immediately after adopting new systems, as workers spend more time troubleshooting and adapting than performing their primary tasks. He concludes that the benefits of technology are real but often delayed by these transitional friction points.
Which choice best states the main idea of the text?
- Sato argues that technological investment is generally a waste of resources because it consistently leads to a decrease in overall productivity.
- The productivity paradox can be explained by the temporary loss of efficiency that occurs while workers learn to use new technological systems.
- Investment in technology leads to an immediate and significant increase in a firm's output once the initial learning dip is overcome.
- Workers at most firms are unable to adapt to new technologies, which is the primary reason that output remains stagnant over time.
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