Asked by Trevor Debelak on Apr 27, 2024
Verified
Employers will hire more units of a resource if the:
A) price of the resource increases.
B) productivity of the resource increases.
C) price of the good being produced declines.
D) price of a complementary resource rises.
Productivity
A measure of the efficiency of production, often quantified as the ratio of outputs (goods and services) produced per input used (such as labor, materials, and capital).
Resource
An economic or productive factor required to accomplish an activity, often considered in terms of time, labor, capital, and materials.
Complementary Resource
refers to inputs or goods that are used together with another resource or good to produce a product or service.
- Acquire an understanding of how technological changes and substitution influence labor demand.
- Discern how fluctuations in input prices influence an organization's decisions on hiring and the extent of employment.
Verified Answer
BP
Breanna PursellMay 03, 2024
Final Answer :
B
Explanation :
Productivity is a measure of how much output is produced per unit of input (such as labor or capital). Therefore, if the productivity of a resource increases, employers will be able to produce more output with the same amount of input, resulting in a lower cost per unit of output. This makes it more profitable for employers to hire more units of that resource. The other choices are incorrect because they suggest factors that would decrease the demand for a resource.
Learning Objectives
- Acquire an understanding of how technological changes and substitution influence labor demand.
- Discern how fluctuations in input prices influence an organization's decisions on hiring and the extent of employment.