📚 Learning Guide
Derived Demand for Labor
medium

The demand for labor is primarily influenced by the demand for the ______ that labor helps to produce.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

services

B

capital

C

products

D

technology

Understanding the Answer

Let's break down why this is correct

Answer

The demand for labor is mainly influenced by the demand for the goods and services that workers help to create. This idea is known as derived demand, meaning that the need for workers comes from the need for what they produce. For example, if more people want to buy cars, car manufacturers will need to hire more workers to build those cars. If the demand for cars decreases, the company may not need as many workers, leading to fewer job opportunities. Therefore, the overall demand for labor depends heavily on how much people want to purchase the products or services that labor helps to provide.

Detailed Explanation

When people want more products, companies need more workers to make them. Other options are incorrect because Some might think services are the main focus; Capital means tools or machines, not what people buy.

Key Concepts

Derived Demand for Labor
Market Dynamics
Employment Trends
Topic

Derived Demand for Labor

Difficulty

medium level question

Cognitive Level

understand

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