Which of the Following Decreases in Labor Demand Is Due

question 243

Multiple Choice

Which of the following decreases in labor demand is due to a change in product demand?

• A) An increase in the price of paper increases the cost of making books, thus decreasing the demand for bookbinders.
• B) The widespread availability of news on the web reduces the demand for newspaper workers.
• C) An increase in the price of steel increases the cost of producing cars and trucks, thus decreasing the demand for automobile workers.
• D) A decline in productivity in retailing decreases the demand for retail sales workers.

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Definitions:

Beta Coefficient

A measurement of a stock's volatility in relation to the overall market.

Cost of Capital

The rate of return a company must offer investors to finance its assets, reflecting the risk of investing.

Interest Rates

The segment of a loan that incurs interest charges, customarily expressed as an annual percentage of the loan's unpaid balance.

External Financing

Funds that a business acquires from outside sources to support its operations or growth, such as loans or equity investments.