How will an increase in population affect the labor market?

Question

Quizplus · Accepted Answer

An increase in population means an increase in the number of potential workers, which shifts the labor market supply curve to the right. This can lead to lower wages and higher unemployment, as there are more workers competing for a limited number of jobs. Option B is incorrect as an increase in population will generally increase the quantity of labor demanded, as there will be more consumers and therefore more demand for goods and services. Option C is incorrect as the supply of jobs is determined by employers, not the population. Option D is incorrect as an increase in population does not necessarily affect the opportunity cost of leisure.

How Will an Increase in Population Affect the Labor Market