One consequence of automation is that producers need fewer:

• A. raw materials
• B. machines (capital)
• C. entrepreneurs
• D. workers (labor)

Answer: (D)

Verified step by step guidance

1. Understand the concept of automation in microeconomics: Automation refers to the use of technology and machines to perform tasks that were previously done by human labor.
2. Identify the factors of production: These typically include labor (workers), capital (machines and equipment), land (natural resources), and entrepreneurship (organizing production).
3. Analyze how automation affects each factor: Automation reduces the need for human labor because machines can perform tasks more efficiently, but it may increase or maintain the need for capital (machines) and entrepreneurship.
4. Recognize that automation does not reduce the need for raw materials or entrepreneurs directly; instead, it primarily reduces the demand for workers (labor).
5. Conclude that the correct answer is 'workers (labor)' because automation substitutes human labor with machines, decreasing the number of workers needed in production.