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WAEC Economics 2015 Question 26

Question 26

Labour Market

Which of the following will increase the demand for labour?

  1. A.Increased wage rate
  2. B.Labour's demand for output
  3. C.Low wage rate
  4. D.Low marginal productivity of labour.
Show the answer and explanation

Answer: B (Labour's demand for output)

Explanation

The demand for labour is derived from the demand for the goods labour produces, so more demand for output raises demand for labour.