If Workers Respond to an Increase in the Opportunity Cost

question 245

Multiple Choice

If workers respond to an increase in the opportunity cost of leisure by taking less leisure,then their labor supply curve is

• A) horizontal.
• B) vertical.
• C) downward sloping.
• D) upward sloping.

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Definitions:

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at preventing anticompetitive practices in their incipiency, including price discrimination, exclusive dealing agreements, and mergers and acquisitions that substantially lessen competition.

Per Se Violation

An action that by its very existence carries with it liability, as opposed to an action that violates a rule of reason.

Sherman Act

A landmark federal statute in antitrust law that prohibits monopolistic practices and promotes competition.

Conglomerate Merger

A merger in which a company merges with another company that is not a competitor or a buyer or seller to the company.