📚 Learning Guide
Labor Demand Dynamics
easy

Which of the following factors is most likely to increase labor demand in a specific industry?

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Learning Path
Learning Path

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Choose the Best Answer

A

Decrease in consumer demand for the industry's products

B

Technological advancements that increase productivity

C

Increase in wages for employees

D

Government regulations that restrict hiring

Understanding the Answer

Let's break down why this is correct

Answer

Labor demand in a specific industry can increase due to several factors, but one of the most significant is a rise in consumer demand for the industry's products or services. When more people want to buy what an industry offers, companies need to produce more, which means they need to hire more workers. For example, if a bakery becomes popular and more customers start buying bread and pastries, the bakery will likely need to hire additional bakers and staff to keep up with the demand. This increase in hiring shows how closely tied labor demand is to consumer interest and spending. Overall, when the market for a product grows, it often leads to a need for more employees in that industry.

Detailed Explanation

When technology improves, workers can produce more in less time. Other options are incorrect because Some might think that less demand for products means more workers are needed; It's easy to think that higher wages attract more workers.

Key Concepts

labor demand
Topic

Labor Demand Dynamics

Difficulty

easy level question

Cognitive Level

understand

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