A country's labor demand curve shifted to the right after the adoption of a new technology.This implies that the use of the new technology ________,assuming all else equal.
A) increased the marginal product of labor
B) reduced the marginal product of labor
C) increased the minimum wage that firms need to pay
D) lowered the minimum wage that firms need to pay

Question

Quizplus · Accepted Answer

An increase in labor demand implies that firms are willing to hire more workers at any given wage rate. This can occur due to an increase in the marginal product of labor, which means that each additional worker is generating more output than before. Therefore, choice A is the best answer since it suggests that the new technology has increased the productivity of labor. Choices C and D are not directly related to the labor demand curve, but rather the minimum wage, which is not necessarily affected by the adoption of new technology.

A Country's Labor Demand Curve Shifted to the Right After