An Increase in the Demand for a Product Will Cause

question 127

Multiple Choice

An increase in the demand for a product will cause output to:

• A) increase and the demand for the resources used to produce the product to rise.
• B) increase and the demand for the resources used to produce the product to fall.
• C) decline, while the demand for the resources used to produce the product remains constant.
• D) increase and the price of resources used to produce the product to increase if their supply is perfectly elastic.

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Definitions:

HR Surplus

The situation where an organization has more employees than needed to effectively accomplish its goals, leading to potential restructuring or downsizing.

Human Capital

The economic value of the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their contribution to the organization.

HR Projection

The activity of predicting the future human resources requirements to achieve the anticipated levels of business operations.

Competitive Advantage

An attribute or condition that provides a business with a superior stance or leverage against its competitors.