The Labor Supply Curve

question 14

Multiple Choice

The labor supply curve:

• A)shows the relationship between the total quantity of labor supplied by all workers in the economy and the wage rate.
• B)shows that,all things being equal,more workers will want to work when wages are higher and less will want to work when wages are lower.
• C)has a positive slope.
• D)All of these are true.

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Definitions:

Implicit Costs

Non-direct payments or out-of-pocket costs, representing the opportunity costs of using resources owned by the firm for its own use.

Explicit Costs

Payments made directly to individuals or entities for business operations, including salaries, leasing costs, and supplies.

Implicit Costs

The opportunity costs of using resources that a firm already owns, rather than the expenses directly paid out.

Explicit Costs

Direct, out-of-pocket expenses incurred by a firm or individual for business operations or activities.