Which of the Following Increases in Labor Demand Is Due

question 189

Multiple Choice

Which of the following increases in labor demand is due to a change in the price of a related resource?

• A) Software sales rise, thus increasing the demand for software developers.
• B) Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards.
• C) A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers.
• D) A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers.

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Definitions:

Depreciation Value

The reduction in value of an asset over time due to wear and tear or obsolescence.

Internal Rate of Return (IRR)

The yield rate at which all of a project's cash flows' net present value becomes null.

Required Return

The minimum expected return an investor views as acceptable for an investment, based on its risk level.

Depreciation Rate

The rate at which an asset loses its value over time, often used for tax and accounting purposes to spread the cost of an asset over its useful life.