Which of the Following Statements About the Supply of Labor

question 33

Multiple Choice

Which of the following statements about the supply of labor is correct?

• A) It is perfectly inelastic at whatever quantity individuals are willing to work.
• B) An individual's supply of labor curve is always upward sloping, like the supply curves of other items.
• C) It is perfectly price elastic at the current wage rate.
• D) An individual's supply of labor curve can bend backwards.
• E) The supply of labor curve is shaped like an upside-down U.

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Definitions:

Work Sheet

An informal document used by accountants to prepare and adjust financial statements.

Current Ratio

A financial ratio indicating a firm's capability to meet its short-term liabilities using its available assets.

Short Term Liabilities

Financial obligations that are due within one year or within the normal operating cycle of the business.

Short Term Assets

Assets expected to be converted into cash or used within one year or one business cycle, whichever is longer.