Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased productivity of workers due to better training
B
A shift in consumer preferences towards electric cars
C
A decrease in the supply of labor in the automotive sector
D
A rise in taxes affecting automotive companies
Understanding the Answer
Let's break down why this is correct
Answer
If there is a significant increase in demand for electric cars, it means more people want to buy them, which can lead to car companies needing to produce more vehicles. To meet this higher demand, these companies may need to hire more workers or pay current workers more to keep up with the production schedule. This increased competition for workers can drive wages higher because companies want to attract skilled labor who can help build the cars. For example, if a factory that makes electric cars expands its operation, it might offer higher wages to attract more workers, ensuring they have enough staff to produce the cars efficiently. This wage increase reflects the growing importance of the electric car market and the need for skilled workers in that industry.
Detailed Explanation
When more people want electric cars, companies need more workers to make them. Other options are incorrect because Some might think better training makes workers more productive; A decrease in workers might seem like a reason for higher wages.
Key Concepts
Product and Factor Markets
Derived Demand
Labor Market Dynamics
Topic
Product and Factor Markets
Difficulty
hard level question
Cognitive Level
understand
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