Which of the Following Could Cause a Decrease in Labor

question 35

Multiple Choice

Which of the following could cause a decrease in labor supply?

• A) An increased preference for working in the labor market
• B) An increase in the number of two-family households
• C) An increased preference for enjoying leisure time
• D) A trend toward less schooling and toward earlier entrance into the labor market
• E) An increase in the retirement age

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Definitions:

Recoveries

denotes the periods following recessions during which economic activity starts to increase and recover towards previous levels.

Discouraged Workers

Individuals who are not actively seeking work because they believe no jobs are available for them or there are none for which they would qualify.

Unemployed

Refers to individuals who are without a job but are actively seeking work.

Contraction

The downturn of the business cycle, when real GDP is declining.