Which is an example of a change in productivity that increases labor demand?
A) Mail-order catalog sales rise,thus increasing the demand for workers in the mail-order business.
B) Sport utility vehicles increase in popularity,thus increasing the demand for the workers who make them.
C) A decrease in the price of lumber decreases the cost of building homes,thus increasing the demand for construction workers.
D) A technological change increases output per worker in the computer industry,thus increasing the demand for computer workers.

Question

Quizplus · Accepted Answer

A technological change that increases productivity per worker allows businesses to produce more output with the same amount of labor. As a result, the demand for workers in that industry will increase as businesses seek to produce more goods and services. In this case, the technological change in the computer industry would lead to an increase in demand for workers in that industry.

Which Is an Example of a Change in Productivity That