Derived demand is a demand for a product or service that a labor is helping to produce. High demand for a product requires more labor be employed to meet that demand. Although the person employed has no direct value to the consumer, the product itself would be nonexistent if it were not for the labor. The person's ability to produce more product rather through knowledge or physical strength is in higher demand. This demand has to be a product society wants. The market value of the product is also a factor. It is only profitable to hire when it increases revenue.
Supply of labor factors in a market are, wages rates, qualification barriers such as education, working conditions such as working with hazardous material, and company benefits
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The Fair Labor Standard Act (FLSA) was signed into law by Franklin Delano Roosevelt. This is the same president to implement the “economic bill of rights”, that included, government cash transfers, the welfare system and social security benefits, and non-cash transfers, such as medical care. Some feel minimum wage protects the rights of unskilled workers, while others feel that minimum wage and minimum wage increases, hurt those that need it most. Inequalities factors includes, the difference in individual abilities, education, discrimination, misfortune, or …show more content…
trade deficit is a result of the U.S. importing more than we are exporting. The U.S. has a high negative trade balance, due to this, other countries will not buy as much of our exports because we are impacting their economics by not increasing their revenue with our purchases The negative result of the U.S. trade deficit means, we are not able to save, yet, we are consuming more, causing our deficit to be financed by borrowing from other countries. Resolving this issue, would be best done when the U.S. must begin to export more than it imports. The currency exchange rate is determined by supply and demand. The higher the currency, the more revenue that country can generate off its exports. This also impacts how much that country will pay for the imports. The country with a high currency rate will be able to pay less for the other country's import. A country with lower inflation, will have a higher currency value. When a country's currency depreciates, that country has to pay more for that good. When a country’s currency appreciate against another country, the country with the higher value is more likely to purchase the country's good because it is seen as a