If Workers Respond to an Increase in the Opportunity Cost

question 176

Multiple Choice

If workers respond to an increase in the opportunity cost of leisure by taking less of it, their labour supply curve is:

• A)downward-sloping
• B)upward-sloping
• C)horizontal
• D)vertical

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Definitions:

Statute Of Frauds

A legal principle requiring certain contracts to be in writing and signed in order to be enforceable.

Partnership Agreement

A formal written agreement among business partners detailing the management, decision-making, and distribution of profits or losses.

Enforceable

A term referring to an agreement, contract, or law that is legally valid and can be upheld or compelled in a court of law.

Partnership

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.