Business and Labor Online Practice

Question

Complete this assessment to review what you’ve learned. It will not count toward your grade.
10 of 1610 of 16 Items

Question
In the market for labor, the demand curve slopes downward. This is due to which of the following facts? (1 point)
Responses

Firms will hire fewer workers at lower wages.
Firms will hire fewer workers at lower wages.

Higher wages increase the quantity of labor that workers are willing to engage in.
Higher wages increase the quantity of labor that workers are willing to engage in.

Higher wages reduce the quantity of leisure that workers are willing to engage in.
Higher wages reduce the quantity of leisure that workers are willing to engage in.

Firms will hire fewer workers at higher wages.
Firms will hire fewer workers at higher wages.
Remaining Attempts : 3

Answer 1

The correct response is:

Firms will hire fewer workers at higher wages.

This is because, as wages increase, the cost of hiring additional workers rises for firms, leading them to reduce the quantity of labor they demand. Hence, the demand curve for labor slopes downward.