Which of the Following Helps to Explain Why the Supply

question 36

Multiple Choice

Which of the following helps to explain why the supply curve of labour is upward sloping?

• A)The supply curve of labour is a derived supply curve; since the output supply curve is upward sloping, so is the labour supply curve.
• B)As the wage rate rises, the income effect causes the quantity of labour supplied to increase.
• C)The substitution effect of a price change makes a good more expensive relative to other goods.
• D)As the wage rate rises, the opportunity cost of leisure rises.

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Definitions:

Net Present Value

A financial measurement that calculates the value of a project or investment by discounting the expected future cash flows to their present value using a specific discount rate.

Tractor-Trailer

A vehicle configuration consisting of a front tractor unit coupled to a trailer carrying cargo.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production.

Annual Cost Savings

The reduction in costs achieved during a year due to various savings measures or efficiencies.