Which of the following helps to explain why the supply curve of labor is upward sloping?
A) The substitution effect of a price change makes a good more expensive relative to other goods.
B) The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping so is the labor supply curve.
C) As the wage rate rises, the income effect causes the quantity of labor supplied to increase.
D) As the wage rate rises, the opportunity cost of leisure rises.
D
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Which of the following is an example of a geographic monopoly?
a. a store in Childersburg that sells only shoelaces b. the only gas station in a radius of one mile c. a store in Sycamore that sells only scrap metal d. the only restaurant in a radius of 200 miles
If demand is perfectly inelastic, the demand curve is vertical, and the price elasticity of demand equals 0
a. True b. False Indicate whether the statement is true or false