Which of the following statements is correct?

Question

Quizplus · Accepted Answer

When workers become more productive, businesses are able to produce more goods and services, leading to an increase in demand for labor. This causes the demand for labor curve to shift rightward. The other statements are incorrect. Increasing human capital (education and skills) typically increases the productivity and supply of labor, causing the supply of labor curve to shift rightward. Increasing labor force participation (e.g. more individuals entering the workforce) also increases the supply of labor, causing the supply curve to shift rightward. Technology decreases often lead to higher labor demand as businesses seek to automate and improve production processes, causing the demand for labor to shift rightward.

Which of the Following Statements Is Correct