Temporary or permanent workers hired to replace striking union workers are known as

Labor market equilibrium occurs at a real wage where the demand for labor exceeds the supply of labor

Indicate whether the statement is true or false

Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

A) workers are irrational. B) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. C) the opportunity cost of working is negative. D) the marginal cost of each additional work hour is not important to most workers. E) workers make decisions based on the social interest.