Which of the following would increase the demand for labor? (i)
A decrease in the output price
(ii)
An increase in the output price
(iii)
A labor-saving technological advance
(iv)
A labor-augmenting technological advance
A)(i) only
B)(i) and (iii) only
C)(ii) only
D)(ii) and (iv) only

Question

Quizplus · Accepted Answer

An increase in the output price (ii) would increase the demand for labor as firms would have more revenue to expand production and hire more workers. Additionally, a labor-augmenting technological advance (iv) would also increase the demand for labor by making workers more productive and increasing the production capacity of the firm.

Which of the Following Would Increase the Demand for Labor