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:

Private Administration

The management and organizational activities conducted by private sector entities, as opposed to public or governmental administration.

Canadian Medical Association

A national, voluntary association of physicians and medical students in Canada that advocates on national health and medical matters.

Founded

Established or initiated something, such as an organization, company, or institution, at a certain point in time.

Quebec City

The capital city of the Canadian province of Quebec, known for its rich history and French cultural heritage.