A Firm's Demand for Labor Depends On, in Part, the Demand

question 31

Multiple Choice

A firm's demand for labor depends on, in part, the demand for the firm's product. To summarize this idea, economists say that the demand for labor is:

• A) derived demand.
• B) marginal demand.
• C) secondary demand.
• D) monopsonistic demand.

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Definitions:

Cognitive Dissonance

Cognitive Dissonance is the mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Subjective Norms

An individual’s perceptions about whether significant others think he or she should (or should not) perform the behavior in question.

Attitude Polarization

The phenomenon whereby a person's stance on a specific issue becomes more extreme after being exposed to opposing arguments.

Effort Justification

A cognitive dissonance theory concept where individuals rationalize the effort they put into achieving a goal, often valuing the outcome more if more effort was required.