Households Increase the Quantity of Labor Supplied When the

question 78

Multiple Choice

Households increase the quantity of labor supplied when the

• A)real wage rate rises because the opportunity cost of not working falls.
• B)nominal wage rate rises because the real wage rate must also rise.
• C)real wage rate rises because the opportunity cost of not working rises.
• D)nominal wage rate falls because the opportunity cost of not working rises.
• E)income tax rises because an increase in the income tax increases the demand for labor.

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Definitions:

Type II Errors

Occurs in hypothesis testing when the null hypothesis is falsely accepted, meaning that a real effect or difference is missed.

Sampling Distributions

The probability distribution of a statistic obtained from a large number of samples drawn from a specific population.

Statistical Significance

A measure of how likely it is that obtained results are not due to chance, often determined by a p-value.

Systematic Variance

The portion of total variance in a set of data that is attributable to identifiable factors or variables, as opposed to random variance.