Which of the following statements is correct?

Question

Quizplus · Accepted Answer

When workers become more productive, they can produce more output per unit of time, which means that they become more valuable to employers. This increased demand for labor leads to a rightward shift in the demand for labor curve.

B, C, and D are incorrect statements. When technology decreases, the supply of labor does not necessarily shift leftward, as it depends on the specific situation. When labor force participation increases, the supply of labor curve shifts rightward, not leftward. Additionally, when human capital increases, the demand for labor curve shifts rightward, not leftward.

Which of the Following Statements Is Correct