WAEC - Economics (2015 - No. 26)

which of the following will increase the demand for labour
Increase wage rate
labour's demand for output
low wage rate
low marginal productivity

Explanation

Factors that can shift the demand curve for labor include: a change in the quantity demanded of the product that the labor produces; a change in the production process that uses more or less labor; and a change in government policy thataffects the quantity of labor that firms wish to hire at a given wage. When the payment for labour is low, fills will be willing to employ more people than with an increased wage rate

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