The missing word in the sentence 'An increase in the ? of workers increases wages' is:

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Prepare for the Abeka Economics Test. Study with quizzes, multiple choice questions, and detailed explanations. Get ready for your exam!

Multiple Choice

The missing word in the sentence 'An increase in the ? of workers increases wages' is:

Explanation:
In the labor market, wages move with the demand for workers. When the demand for workers increases, employers must compete more to hire the needed talent, so they raise the wages offered. This reflects the value of an additional worker to the firm—the marginal product and the revenue they help generate. While higher productivity or more capital can also push wages up, the direct reason the sentence points to is a rise in the demand for workers. If more workers are available but demand doesn’t rise, wages would not rise for the same reason.

In the labor market, wages move with the demand for workers. When the demand for workers increases, employers must compete more to hire the needed talent, so they raise the wages offered. This reflects the value of an additional worker to the firm—the marginal product and the revenue they help generate. While higher productivity or more capital can also push wages up, the direct reason the sentence points to is a rise in the demand for workers. If more workers are available but demand doesn’t rise, wages would not rise for the same reason.

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