Which Is an Example of a Change in Productivity That

question 25

Multiple Choice

Which is an example of a change in productivity that increases labor demand?

• A) Mail-order catalog sales rise,thus increasing the demand for workers in the mail-order business.
• B) Sport utility vehicles increase in popularity,thus increasing the demand for the workers who make them.
• C) A decrease in the price of lumber decreases the cost of building homes,thus increasing the demand for construction workers.
• D) A technological change increases output per worker in the computer industry,thus increasing the demand for computer workers.

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Definitions:

Illinois Central Railroad

A historic American railroad that operated in the central United States, particularly known for its role in the development of the railway network from the Great Lakes to the Gulf of Mexico.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Elastic

A characteristic of demand or supply where a change in price leads to a significant change in the quantity demanded or supplied.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a product or service to a change in its price.