In general, the labor supply curve
A) is perfectly elastic at the equilibrium wage rate.
B) is vertical at the equilibrium wage rate.
C) slopes upward because as the wage rises the opportunity cost of leisure increases.
D) slopes downward because firms will hire fewer workers at higher wages.
C
You might also like to view...
The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world
Indicate whether the statement is true or false
When economists say an individual displays economizing behavior, they simply mean that she is
a. making a lot of money. b. buying only those products that are cheap and of low quality. c. learning how to run a business more effectively. d. seeking the lowest cost method to accomplish her objectives.
You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to double by the end of the year. As a result,
a. your demand for peanut butter will increase, but not until the end of the year. b. your demand for peanut butter increases today. c. your demand for peanut butter decreases as you look for a substitute good. d. you will wait for the price of jelly to change before altering your demand for peanut butter.
The role of the entrepreneur in society is to:
a. Bring the factors of production together and take the risks of producing b. Control the land upon which all production takes place to get the most rent c. Provide capital to the firm which the management combines with labor d. Work with other elected officials to determine what goods are produced