What Does an Upward-Sloping Supply Curve Mean

question 33

Multiple Choice

What does an upward-sloping supply curve mean

• A)It means that workers prefer to buy more leisure time when their incomes increase.
• B)It means that workers prefer to supply less labour when wages are high.
• C)It means that an increase in the opportunity cost of leisure leads workers to increase the quantity of labour they supply.
• D)It means that workers will be more productive at higher wages.

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Definitions:

Fixed Costs

Expenses that do not change in total amount with fluctuations in business activity level, such as rent, salaries, and insurance.

Inventory

The raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the future.

Absorption Costing

A method of accounting that encompasses all costs associated with manufacturing a product, including direct materials, direct labor, and all manufacturing overhead costs, both fixed and variable.

Variable Costing

A costing method where only variable costs (costs that change with production volume) are included in the product cost, excluding fixed costs.