Labor markets are different from most other markets because labor demand is

Question

Quizplus · Accepted Answer

Labor demand is a derived demand because it comes from the demand for the goods and services that the workers produce. This is different from most other markets where demand is a direct result of consumer preference and willingness to pay. The fact that labor is a derived demand leads to unique dynamics in labor markets, such as wage stickiness and cyclical unemployment.

Labor Markets Are Different from Most Other Markets Because Labor