Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Wages
B
Labor productivity
C
Service demand
D
Job vacancies
Understanding the Answer
Let's break down why this is correct
Answer
The relationship between demand for labor and product demand is based on the idea of derived demand, which means that the need for workers comes from the demand for the products they make. When more people want to buy a product, like bicycles, companies need to hire more workers to produce those bicycles. This is similar to how the supply of labor relates to the demand for the products that workers help create. In this case, the supply of labor can be compared to the demand for the bicycles, as more workers are available to meet the needs of production based on how many bicycles people want to buy. So, just as the demand for labor depends on product demand, the supply of labor depends on the demand for what workers produce.
Detailed Explanation
When people want more products, companies need more workers. Other options are incorrect because Some might think wages are the main link; This option confuses types of demand.
Key Concepts
Derived Demand for Labor
Elasticity of Labor Supply
Market Dynamics
Topic
Derived Demand for Labor
Difficulty
medium level question
Cognitive Level
understand
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