What Is Most Likely to Cause a Decrease in Demand

question 3

Multiple Choice

What is most likely to cause a decrease in demand for unskilled labour in Australia?

• A)an increase in productivity gains among the unskilled labourers
• B)an increase in demand for goods produced by unskilled labour
• C)an increase in immigration
• D)an increase in international trade with countries where unskilled labour is more plentiful

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Definitions:

Inflation

The speed at which the average price of goods and services increases, resulting in a reduction of money's buying power.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Lenders

Lenders are individuals or institutions that provide funds to others with the expectation that the funds will be repaid, usually with interest.

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental.