Multiple Choice
Which is an example of a change in productivity that decreases labor demand?
A) A financial crisis in Asian nations reduces the demand for exports to Asia, thus decreasing the demand for domestic workers in the computer industry.
B) Tattoos fade in popularity, thus decreasing the demand for tattoo artists.
C) More government regulation decreases output per worker in the fast food industry, thus decreasing demand for fast food workers.
D) An increase in the price of construction equipment reduces the demand for construction equipment operators.
Correct Answer:
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