An Upward-Sloping Labor Supply Curve Means That

question 571

Multiple Choice

An upward-sloping labor supply curve means that

• A)workers prefer to buy more leisure time when their incomes increase.
• B)workers prefer to supply less labor when wages are high.
• C)an increase in the opportunity cost of leisure leads workers to increase the quantity of labor they supply.
• D)All of the above are correct.

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Definitions:

Price Takers

Participants in a market who accept the market price as given and have no influence over it, typically because of the competitive nature of the market.

Legal Structure

The framework within which a business operates, including its designation as a corporation, partnership, sole proprietorship, or other legal entity.

Barrier To Entry

Factors that make it difficult for new competitors to enter a market, such as high start-up costs or regulatory hurdles.

Price-Control Legislation

Laws enacted by a government to regulate the prices charged for goods and services in the market, often to protect consumers.