The quantity of labor supplied increases as the real wage rises because
A) higher real wages mean that nominal wages have increased.
B) the opportunity cost of working increases.
C) the quantity of labor demanded increases.
D) labor force participation decreases so that only serious workers are left in the labor force.
E) the opportunity cost of leisure rises.
E
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Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?
A) Option 1 B) Option 3 C) Option 4 D) Both options 1 and 3 are economically efficient.
The law of diminishing returns implies that, with the quantity of capital fixed, as the use of labor rises
A) total product will fall eventually. B) the marginal product of labor will fall eventually. C) the total product of labor will fall below the marginal product of labor. D) the production process will become technologically inefficient eventually.
The rate of natural increase in the population of developing countries is most correlated with
(a) advances in developed country technology (b) increases in developing country income (c) an increase in the fertility rate (d) all of the above.
What do supply and demand curves have in common?
a. They both usually slope upward. b. They both show a relationship between quantity and price. c. They both usually slope downward. d. They can both shift in response to changes in income or wealth. e. Neither of them is influenced by the size of the population.