Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Higher unemployment rates
B
Increased wages for workers
C
Decreased job opportunities
D
A reduction in production levels
Understanding the Answer
Let's break down why this is correct
Answer
An increase in labor demand in an economy usually means that businesses are looking to hire more workers. This often happens when the economy is growing, and companies need more employees to meet the rising demand for their products or services. For example, if a new factory opens and starts producing more goods, it will need more workers to operate the machines and manage production. As a result, more job openings are created, which can lead to lower unemployment rates. This situation can also result in higher wages, as companies may offer more money to attract the best candidates.
Detailed Explanation
When more workers are needed, companies often pay higher wages to attract them. Other options are incorrect because Some might think that more demand for workers means more people are without jobs; It might seem that if companies are busy, they won't hire more people.
Key Concepts
labor demand
Topic
Labor Market Dynamics
Difficulty
easy level question
Cognitive Level
understand
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