Households Increase the Quantity of Labor Supplied When the

question 10

Multiple Choice

Households increase the quantity of labor supplied when the

• A)income tax rises because an increase in the income tax increases the demand for labor.
• B)nominal wage rate falls because the opportunity cost of not working rises.
• C)nominal wage rate rises because the real wage rate must also rise.
• D)real wage rate rises because the opportunity cost of not working falls.
• E)real wage rate rises because the opportunity cost of not working rises.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of that behavior being repeated in the future.

Fixed-Ratio Schedule

A schedule of reinforcement where a response is rewarded only after a specified number of responses have been made.

Negative Reinforcement

A process in behavioral psychology where the removal of an undesirable or unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Conditioning

A learning process that involves developing associations between events or behaviors and consequential outcomes, such as rewards or punishments.