Practice Questions
Click any question to see detailed solutions
How does technological change typically affect the demand for labor in a given industry?
When technology changes, it often needs workers with special skills. Other options are incorrect because Some might think that technology creates more...
Which of the following factors is most likely to cause a leftward shift in the labor demand curve in a macroeconomic context?
When the minimum wage goes up, businesses may hire fewer workers. Other options are incorrect because Some might think that more consumer demand means...
How does a rise in macroeconomic activity influence the demand for labor in sectors with complementary labor inputs?
When the economy grows, businesses need more workers. Other options are incorrect because Some might think that all sectors lose workers when the econ...
Which of the following factors is most likely to cause a leftward shift in the labor demand curve for a specific industry?
When companies use more machines and technology, they need fewer workers. Other options are incorrect because Some might think that when people have m...
How do macroeconomic influences affect labor demand when considering the complementarity between different types of labor supply?
When people buy more goods, companies need more workers. Other options are incorrect because This suggests that less economic activity always means le...
Which of the following factors is most likely to cause a shift in the labor demand curve to the right?
When technology improves, workers can produce more in less time. Other options are incorrect because Some might think that less demand for goods means...
What is one primary reason that can cause a shift in the labor demand curve in an economy?
When new technology is created, it can change how work is done. Other options are incorrect because Some might think that what people like affects job...
What could cause a rightward shift in the labor demand curve?
When technology improves, it helps workers do their jobs better and faster. Other options are incorrect because Some might think that less consumer de...
If a company experiences an increase in worker productivity, what is the likely effect on labor demand?
When workers are more productive, they can produce more in less time. Other options are incorrect because Some might think that if workers are more pr...
Which of the following scenarios would likely lead to a rightward shift in the demand for labor? Select all that apply.
Other options are incorrect because New technology can make workers more productive, but it doesn't always mean more workers are needed; Lowering the ...
When productivity increases, the demand for labor typically shifts to the right because firms are more willing to hire additional workers to meet the increased output. This shift is primarily influenced by the concept of _________.
Marginal productivity means the extra output from hiring one more worker. Other options are incorrect because Some might think that costs alone drive ...
A local bakery has recently upgraded its equipment, significantly increasing its efficiency in producing pastries. How is this expected to affect the bakery's demand for labor?
When a bakery becomes more efficient, it can make more pastries quickly. Other options are incorrect because Some might think that better machines mea...
If a company's productivity significantly increases, what is the most likely effect on its demand for labor?
When a company becomes more productive, it can make more goods or provide more services. Other options are incorrect because Some might think that mor...
Arrange the following steps in the correct order to explain how an increase in productivity affects labor demand: A) Businesses experience higher efficiency, B) Demand for labor shifts to the right, C) Employment levels rise, D) Businesses seek to hire more workers.
When businesses become more efficient, they can produce more with the same resources. Other options are incorrect because This option suggests that em...
A company experiences a significant increase in worker productivity due to new technology. How would this development most likely affect the demand for labor in the company, and why should it be classified in the context of labor demand shifts?
When workers are more productive, the company can produce more with the same number of workers. Other options are incorrect because Some might think t...
If an increase in technology efficiency leads to higher productivity in manufacturing, then an increase in worker demand is similar to what effect on the demand for a good when its price decreases?
When technology makes production easier, companies need more workers. Other options are incorrect because Some might think that if more workers are ne...
If productivity in a firm increases, what is the most likely effect on the demand for labor?
When productivity goes up, firms can make more goods or provide more services. Other options are incorrect because Some might think that automation, o...
Master Understanding Labor Demand Shifts
Ready to take your understanding to the next level? Access personalized practice sessions, progress tracking, and advanced learning tools.