Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The total number of workers available in the market
B
The number of workers that employers are willing to hire at a given wage
C
The overall skill level of the workforce
D
The minimum wage set by the government
Understanding the Answer
Let's break down why this is correct
Answer
Labor demand refers to the number of workers that employers are willing and able to hire at different wage levels. In the labor market, equilibrium occurs when the number of jobs available matches the number of people looking for work, meaning that the demand for labor equals the supply of labor. For example, if a company needs 10 workers but only 5 people are looking for jobs, there is a mismatch, leading to increased competition for those few jobs. Conversely, if many people want to work but there are not enough jobs, wages may decrease as employers don't need to pay more to attract workers. Thus, labor demand plays a crucial role in determining wage levels and employment rates in the economy.
Detailed Explanation
Labor demand means how many workers companies want to hire at a certain pay. Other options are incorrect because This option confuses the number of workers with what employers want; Skill level is about how good workers are at their jobs.
Key Concepts
labor demand
Topic
Labor Market Equilibrium
Difficulty
easy level question
Cognitive Level
understand
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