Which of the Following Increases in Labor Demand Is Due

question 213

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:

Cash Outflow

Money or cash disbursed by a business for various purposes like operating expenses, investment, and financing activities.

Inventory Purchase

The acquisition of goods and materials that a company intends to sell or use in production, recorded as an asset on the balance sheet until sold.

Financing Activity

Transactions and events where cash is obtained from or repaid to investors and creditors, excluding those relating to operating and investing activities.

Capital Stock

The total amount of a company's share equity including both common and preferred shares, representing the initial investment in the business.