Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
An increase in the demand for electric cars will increase the demand for labor in the automotive industry.
B
Labor demand is solely determined by the availability of workers in the market.
C
A decrease in consumer demand for a product will lead to a decrease in the demand for labor to produce that product.
D
Technological advancements can shift the demand curve for labor independent of product demand.
E
The demand for healthcare workers is influenced by the overall demand for healthcare services.
Understanding the Answer
Let's break down why this is correct
Answer
Derived demand for labor means that the need for workers is based on the demand for the goods and services they produce. This means that if more people want to buy a certain product, companies will need to hire more workers to make that product. For example, if a bakery sees an increase in customers wanting bread, it may need to hire more bakers to keep up with the demand. Therefore, the demand for labor in this case is derived from the demand for bread. In summary, when the demand for a product goes up, the demand for the workers who make that product also increases.
Detailed Explanation
Derived demand means that the need for workers comes from the demand for the products or services they create. Other options are incorrect because This option suggests that just because electric cars are popular, it automatically means more workers are needed; This statement implies that the number of workers alone decides labor demand.
Key Concepts
Derived Demand for Labor
Market Dynamics
Labor Economics
Topic
Derived Demand for Labor
Difficulty
hard level question
Cognitive Level
understand
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