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:

Placebo Group

A group of participants in a clinical trial that receives a sham treatment to compare the actual treatment's effectiveness against no treatment.

Control Group

A group in a study or experiment that does not receive the experimental treatment and is used as a benchmark to gauge the effects of the intervention.

Sunscreens

Products that protect the skin from the harmful effects of ultraviolet radiation by absorbing, reflecting, or scattering sunlight.

Randomization

The process of randomly assigning study participants to different treatment or control groups to reduce biased outcomes in research.