Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Labor demand will increase as more workers are hired
B
Labor demand will decrease because fewer workers are needed
C
Labor demand will remain unchanged regardless of productivity
D
Labor demand will fluctuate randomly without a clear pattern
Understanding the Answer
Let's break down why this is correct
Answer
When a company sees an increase in worker productivity, it means that employees are able to produce more goods or services in the same amount of time. This boost in productivity often leads the company to want to hire more workers because they can produce even more with a larger team. For example, if a factory's workers become faster at assembling products, the factory may decide to expand operations and bring in additional workers to meet the growing demand for their products. As a result, the demand for labor increases because the company wants to take advantage of the higher productivity. Overall, higher productivity usually leads to a greater need for workers to keep up with production goals.
Detailed Explanation
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 productive, fewer workers are needed; It's a common belief that productivity doesn't change labor needs.
Key Concepts
Labor Demand Shifts
Productivity
Employment Levels
Topic
Understanding Labor Demand Shifts
Difficulty
easy level question
Cognitive Level
understand
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