Figure 18-3 -Refer to Figure 18-3.The Shift of the Labor Supply Curve

question 156

Multiple Choice

Figure 18-3

-Refer to Figure 18-3.The shift of the labor supply curve from S₁ to S₂ could possibly be explained by

• A)a change in workers' attitudes toward the work-leisure tradeoff.
• B)decreases in wages in other labor markets.
• C)immigration of workers into the region or country.
• D)All of the above are correct.

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Definitions:

Public Savings

The portion of national savings held by the government, typically reflected in budget surpluses.

Personal Income

The total amount of income earned by an individual from all sources before any taxes are deducted.

Autonomous Consumption

Describes the expenditure that consumers will make even when they have no income, considering it as a basic level of consumption driven by needs.

Saving

The act of setting aside money for future use, reducing current consumption.