Scenario 14.1 A Worker in Firm a Earns an Income of $5,000

question 51

Multiple Choice

Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-Which of the following best explains the shape of the individual labor-supply curve?

• A)The individual labor-supply curve is exactly like any supply curve, it always has a positive slope.
• B)The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure.
• C)The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates.
• D)The individual labor-supply curve must be vertical because each person can work only eight hours per day.
• E)The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.

---

Definitions:

ADR

Alternative Dispute Resolution; methods outside the courtroom, such as mediation or arbitration, used to resolve disputes.

60 Percent

A fraction, represented as sixty out of one hundred, often used to signify a majority or a significant portion in various contexts.

75 Percent

A fraction or percentage representing three quarters of a whole or total.

ADR

Stands for Alternative Dispute Resolution, which encompasses various methods for resolving disputes outside the traditional court system, such as mediation and arbitration.