Which of the following events could decrease the demand for labor?
A)An increase in the number of migrant workers
B)An increase in the marginal productivity of workers
C)A decrease in demand for the final product produced by labor
D)A decrease in the supply of labor

Question

Quizplus · Accepted Answer

If the demand for the final product produced by labor decreases, firms will have less need for workers to produce the product, leading to a decrease in demand for labor. Alternatively, an increase in the number of migrant workers or a decrease in the supply of labor may actually increase the demand for labor due to an increase in the availability of workers. An increase in the marginal productivity of workers would lead to an increase in demand for labor.

Which of the Following Events Could Decrease the Demand for Labor