How May an Increase in the Demand for Labour Occur

question 6

Multiple Choice

How may an increase in the demand for labour occur?

• A) When there is less productivity
• B) With a decrease in demand for the final product.
• C) With an increase in the revenue from selling the extra units.
• D) With an increase in the supply of labour.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Wages

Payments made to employees for their labor, typically calculated on an hourly, daily, or piecework basis.

Economic Rent

The excess payment made to a factor of production over and above what would be needed to keep it in its current use.

Marginal Revenue Product

The additional revenue generated from employing one more unit of input, such as labor or capital.