An increase in the proportion of people of working age seeking employment:Group of answer choicesdecreases labour supplydecreases labour demandincreases labour supplyincreases labour demand
Question
An increase in the proportion of people of working age seeking employment:Group of answer choicesdecreases labour supplydecreases labour demandincreases labour supplyincreases labour demand
Solution
An increase in the proportion of people of working age seeking employment:
Increases labour supply.
Explanation:
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The labour supply refers to the total number of people within an economy who are willing and able to work.
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If the proportion of people of working age seeking employment increases, it means more people are willing to work. This increases the labour supply.
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This does not directly affect labour demand, which is determined by employers' need for workers.
So, the correct answer is "increases labour supply."
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