📚 Learning Guide
Understanding Labor Demand Shifts
easy

What is one primary reason that can cause a shift in the labor demand curve in an economy?

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Learning Path
Learning Path

Question & Answer
1
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2
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3
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4
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Choose the Best Answer

A

Change in consumer preferences

B

Increase in minimum wage

C

Technological advancements

D

Decrease in population

Understanding the Answer

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Answer

One primary reason that can cause a shift in the labor demand curve is changes in technology. When new technology is introduced, it can make certain jobs easier or even replace some workers with machines. For example, if a factory starts using robots to assemble products, it may need fewer workers for that task. As a result, the demand for labor in that factory decreases, shifting the labor demand curve to the left. This shift means there are fewer job opportunities for workers in that specific area, affecting the overall labor market.

Detailed Explanation

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 demand; Many believe that raising the minimum wage directly increases job demand.

Key Concepts

labor market
Topic

Understanding Labor Demand Shifts

Difficulty

easy level question

Cognitive Level

understand

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