📚 Learning Guide
Understanding Labor Demand Shifts
easy

Which of the following scenarios would likely lead to a rightward shift in the demand for labor? Select all that apply.

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Choose the Best Answer

A

An increase in worker productivity due to new technology

B

A decrease in the minimum wage

C

A rise in consumer demand for a product

D

A significant increase in business taxes

E

Enhanced training programs leading to better-skilled workers

Understanding the Answer

Let's break down why this is correct

Answer

A rightward shift in the demand for labor means that employers want to hire more workers at every wage level. This can happen when there is an increase in demand for the goods or services that those workers produce. For example, if a new technology makes it easier to produce a popular product, companies may need more workers to keep up with the increased sales. Similarly, if a local economy grows and more businesses open, they will also require more employees, leading to greater demand for labor. Therefore, any scenario that boosts the need for goods or services will likely shift demand for labor to the right.

Detailed Explanation

Other options are incorrect because New technology can make workers more productive, but it doesn't always mean more workers are needed; Lowering the minimum wage might not increase demand for workers.

Key Concepts

Labor Demand Shifts
Productivity
Economic Growth
Topic

Understanding Labor Demand Shifts

Difficulty

easy level question

Cognitive Level

understand

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