The Quantity of Labor Supplied Increases as the Real Wage

question 33

Multiple Choice

The quantity of labor supplied increases as the real wage rises because

• A)the opportunity cost of working increases.
• B)the quantity of labor demanded increases.
• C)labor force participation decreases so that only serious workers are left in the labor force.
• D)the opportunity cost of leisure rises.
• E)higher real wages mean that nominal wages have increased.

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Definitions:

Practical Intelligence

The intellectual skills used in everyday problem solving. (Sometimes called tacit intelligence.)

Sternberg's Intelligences

A theory proposing three main types of intelligence: analytical (problem-solving abilities), creative, and practical, which help individuals face various life challenges.

Fluid Intelligence

The facet of human intellect that encompasses the capacity to rationalize, adapt thinking, and tackle novel issues independently of previously gained knowledge.

Fundamental Forms

Basic structures or elements within a discipline or area of study that form the groundwork for further development or understanding.