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:

Financial Statements

Comprehensive reports on a company's financial performance, condition, and cash flow, including the balance sheet, income statement, and statement of cash flows.

Federal Taxes

Taxes imposed by the government on income, property, sales, and other activities, used to fund public services and operations.

Employees' Wages

The compensation paid to employees for their labor or services, typically calculated on an hourly or salary basis.

Liability

Financial obligations or debts that a company owes to outside parties.