📚 Learning Guide
Derived Demand for Labor
easy

What is derived demand for labor primarily influenced by?

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Learning Path
Learning Path

Question & Answer
1
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2
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3
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4
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Choose the Best Answer

A

Consumer demand for goods and services

B

Government regulations

C

Technological advancements

D

Wage levels

Understanding the Answer

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Answer

Derived demand for labor means that the need for workers is based on the demand for the goods and services they produce. When consumers want more of a product, companies need to hire more employees to make that product. For example, if a bakery sees an increase in customers wanting more bread, it will need to hire additional bakers to keep up with the demand. This shows how the demand for labor is not about workers themselves but about the products they help create. In short, the more people want something, the more workers are needed to supply it.

Detailed Explanation

When people want to buy more products, companies need more workers. Other options are incorrect because Some might think rules from the government create jobs; People might believe new technology always creates jobs.

Key Concepts

Labor market
Topic

Derived Demand for Labor

Difficulty

easy level question

Cognitive Level

understand

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