Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The marginal productivity of labor
B
The overall unemployment rate
C
The level of government intervention
D
The availability of natural resources
Understanding the Answer
Let's break down why this is correct
Answer
Derived demand for labor means that the need for workers comes from the demand for the products or services they help create. For example, if more people want to buy cars, car manufacturers will need to hire more workers to build those cars. This increase in demand for cars leads to a higher demand for labor in the car industry. Essentially, the demand for labor is not based on the labor itself but on the demand for what that labor produces. Therefore, when businesses see a chance to sell more products, they are likely to hire more workers to meet that demand.
Detailed Explanation
Derived demand for labor depends on how much workers can produce. Other options are incorrect because Some might think that the overall jobless rate affects demand for workers; People may believe that government rules decide how many workers are needed.
Key Concepts
Marginal productivity
Topic
Derived Demand for Labor
Difficulty
easy level question
Cognitive Level
understand
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