Which of the Following Is a Reason That Some Economists

question 54

Multiple Choice

Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?

• A)Wages are paid in dollars and leisure is measured in time,hence there is no way to compare the two.
• B)On a day-to-day basis,most jobs do not have the flexibility to allow people to weigh the benefits and costs to determine how much they should work that day.
• C)In the long-run,the supply of labor hours is perfectly inelastic.
• D)An increase in the wage rate always leads to an increase in the supply of labor hours.
• E)Some people do not work at all,so there is no labor-leisure tradeoff for those individuals.

---

Definitions:

Production Function

An equation that describes the relation between inputs used in production and the output of goods or services.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Commodity

A basic asset deployed in commercial transactions that is exchangeable with other assets of the same classification.

Maximise

To maximize something to its utmost potential or level.