Question

select the correct answer.
when do businesses typically decide to hire more labor?
a. when wages are at all - time highs
b. when raw materials are limited
c. when demand is increasing
d. when interest rates are low

Explanation:

Businesses hire more labor to meet higher production needs driven by increasing demand for their goods or services. High wages (A) raise labor costs, limited raw materials (B) restrict production capacity, and low interest rates (D) affect investment more than direct labor hiring for demand fulfillment. Thus, increasing demand is the primary trigger for hiring more labor.

Answer:

C. when demand is increasing