If Workers Respond to an Increase in the Opportunity Cost

question 260

Multiple Choice

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

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

---

Definitions:

Personal Funds

Money that individuals have saved or accumulated, which can be used for investments, starting a business, or other personal uses.

Venture Capital Firms

Companies that invest in start-ups and small businesses with high growth potential in exchange for equity, or partial ownership, of the company.

Public Offerings

Refers to the process by which a private company offers shares to the public in a new stock issuance, allowing it to raise capital from public investors.

Lending Criteria

The standards and requirements a lender uses to evaluate the creditworthiness of a potential borrower.