Practice Questions
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In the context of derived demand for labor, how does the demand for labor differ in the short-run compared to the long-run?
In the long-run, companies can change how much they produce. Other options are incorrect because Some might think that short-run demand is more flexib...
How does an increase in the marginal productivity of labor affect the derived demand for labor in a competitive market?
When workers become more productive, they create more value for the company. Other options are incorrect because Some might think that more productivi...
In the context of derived demand for labor, how does an increase in the demand for a product affect the labor market in that industry?
When more people want a product, companies need more workers to make it. Other options are incorrect because Some might think that more demand for a p...
How does the substitution effect influence the derived demand for labor in an industry experiencing a technological advancement?
When technology improves, machines can do tasks that workers used to do. Other options are incorrect because Some might think new technology means mor...
In the context of derived demand for labor, which of the following scenarios illustrates a shift in labor demand in the short run rather than in the long run?
When more people want to buy a product, companies need to make more of it quickly. Other options are incorrect because This option suggests that techn...
What is derived demand for labor primarily dependent on?
Derived demand for labor comes from the need for goods and services. Other options are incorrect because Some might think that the number of workers a...
What is derived demand for labor primarily influenced by?
When people want to buy more products, companies need more workers. Other options are incorrect because Some might think rules from the government cre...
What is derived demand for labor primarily influenced by?
Derived demand for labor depends on how much workers can produce. Other options are incorrect because Some might think that the overall jobless rate a...
Which of the following statements accurately reflect the concept of derived demand for labor? Select all that apply.
Derived demand means that the need for workers comes from the demand for the products or services they create. Other options are incorrect because Thi...
Demand for labor:Product demand :: Supply of labor:?
When people want more products, companies need more workers. Other options are incorrect because Some might think wages are the main link; This option...
Arrange the following steps in the correct order that illustrates the relationship between product demand and labor demand: A) Increase in consumer demand for a product B) Firms increase production to meet demand C) Firms require more labor to increase production D) Labor demand increases as a result
When more people want a product, companies need to make more of it. Other options are incorrect because This option suggests that production increases...
A local bakery has noticed a significant increase in the demand for its specialty cakes due to a nearby wedding expo. In response, the bakery decides to hire more bakers. Which of the following best explains the relationship between the increase in cake demand and the bakery's decision to hire more labor?
The bakery needs more bakers because more people want cakes. Other options are incorrect because This answer suggests the bakery is hiring based on fu...
A local bakery increases its production of pastries due to a rise in customer demand. What category does the demand for additional bakers fall into?
When more pastries are needed, the bakery needs more bakers. Other options are incorrect because Some might think direct demand means needing workers ...
The demand for labor is primarily influenced by the demand for the ______ that labor helps to produce.
When people want more products, companies need more workers to make them. Other options are incorrect because Some might think services are the main f...
If a new technology significantly increases the productivity of workers in the manufacturing sector, what is the most likely effect on the demand for labor in that sector?
When technology helps workers produce more, companies need fewer workers to make the same amount of products. Other options are incorrect because Some...
How would a significant increase in consumer demand for electric vehicles likely affect the labor market for automotive engineers?
When more people want electric cars, companies need to make more of them. Other options are incorrect because Some might think that if companies autom...
How does an increase in consumer demand for a product affect the demand for labor in that industry?
When more people want a product, companies need to make more of it. Other options are incorrect because Some might think that machines will replace wo...
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