What Does an Upward-Sloping Labor Supply Curve Mean

question 220

Multiple Choice

What does an upward-sloping labor 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 labor when wages are high.
• C) It means that an increase in the opportunity cost of leisure leads workers to increase the quantity of labor they supply.
• D) All of the above are correct.

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Definitions:

Interest Expense

The amount of interest payable on any borrowed funds.

Notes Payable

A written promise to pay a certain amount of money, usually bearing interest, by a specific date; it is a liability on the balance sheet.

Interest Payable

A liability account shown on a company’s balance sheet which represents the amount of interest expense that has accrued but has not been paid as of the balance sheet date.

Interest Expense

The financial cost of borrowing money that an entity sustains over time.