Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
An increase in consumer demand for goods and services
B
A rise in the minimum wage
C
Technological advancements that enhance productivity
D
An increase in government spending
Understanding the Answer
Let's break down why this is correct
Answer
A leftward shift in the labor demand curve means that employers want to hire fewer workers at the same wage levels. This can happen for several reasons, but one common cause is a decrease in business activity or economic downturn. For example, if a company experiences a drop in sales, it may decide to cut back on hiring or even lay off workers, leading to a decrease in demand for labor. Another factor could be advancements in technology that allow companies to produce the same amount of goods with fewer employees, reducing their need for labor. Overall, any situation where businesses feel less confident about their future can lead to a leftward shift in labor demand.
Detailed Explanation
When the minimum wage goes up, businesses may hire fewer workers. Other options are incorrect because Some might think that more consumer demand means more jobs; People might believe that new technology always reduces jobs.
Key Concepts
labor market
macroeconomic influences.
Topic
Understanding Labor Demand Shifts
Difficulty
medium level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.