The Demand for Labor Is Said to Be a Derived

question 22

Multiple Choice

The demand for labor is said to be a derived demand because it comes from the demand for goods that labor produces. Suppose that strawberries are a labor-intensive good.An increase in the price of strawberries will ________ the demand for strawberries,which will ________ the demand for strawberry pickers.

• A)increase, increase
• B)increase, decrease
• C)decrease, increase
• D)decrease, decrease

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Definitions:

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Network Design

The planning and optimization of a network's physical, financial, and operational capacities to achieve desired objectives.

Marginal Benefit

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.