Question

Select the correct answer.

When do businesses typically decide to hire more labor?
O A. when interest rates are low
O B.
O C.
when wages are at all-time highs
when raw materials are limited
OD. when demand is increasing

Answer 1

Businesses typically hire more labor OD. when demand is increasing.

Step-by-step explanation:

Businesses typically decide to hire more labor when demand is increasing. When the demand for a product or service increases, businesses need more workers to meet the increased demand and ramp up production. The labor demand curve shifts to the right when firms perceive that the economy is expanding and they desire to hire a greater quantity of labor.

For example, let's say there is a company that produces electronics. They have been receiving more orders for their products, indicating an increase in demand. In order to meet the growing demand, the company decides to hire more workers to increase production capacity.

Therefore, the correct answer is D. when demand is increasing.