Which of the Following Is Most Likely to Reduce the Supply

question 26

Multiple Choice

Which of the following is most likely to reduce the supply of labor?

• A) An increase in population
• B) An increase in the value placed on leisure by workers
• C) A decrease in the value placed on leisure by workers
• D) A decrease in labor productivity

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Definitions:

Circular-Flow Diagram

An illustrative depiction of the economy demonstrating the circulation of currency among markets, households, and companies.

Firms

Firms are business organizations engaged in industrial, commercial, or professional activities, aiming to generate profits.

Circular Flow Model

An economic model that depicts the continuous flow of money, goods, services, and factors of production between households and businesses in an economy.

Economy

An arrangement for creating, distributing, and using goods and services within a specified geographic region.