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 amount of workers that employers want to hire at different wage levels in the labor market. When employers need more workers, they increase wages to attract more applicants, which can lead to a higher demand for labor. In a labor market equilibrium, the number of workers that employers want to hire matches the number of workers who are willing to work at that wage. For example, if a factory needs 50 workers and is willing to pay $15 an hour, and there are 50 people who want to work for that wage, the labor market is in equilibrium. If either side changes—like if wages go up or down—the balance can shift, affecting employment levels.
Detailed Explanation
Labor demand means how many workers companies want to hire at a certain pay. Other options are incorrect because Some might think labor demand is about how many workers are available; People might confuse labor demand with the skill level of workers.
Key Concepts
labor demand
Topic
Labor Market Equilibrium
Difficulty
easy level question
Cognitive Level
understand
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