A Leftward Shift in the Labor Supply Curve Would Result

question 21

Multiple Choice

A leftward shift in the labor supply curve would result if:

• A) people value leisure less highly.
• B) people have less nonlabor income.
• C) transit costs to and from work increase.
• D) the population increases.

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Definitions:

Indicator Variable

A variable used in statistical analyses that adopts a value of 1 if a certain condition is true and 0 if false, often used to represent the presence or absence of a characteristic.

Dummy Variable

A variable used in regression analysis to represent subgroups of the sample in your study.

Nominal Independent Variable

A variable used in statistical analysis that represents categories without a natural order or ranking.

Indicator Variables

Binary variables that represent presence (1) or absence (0) of a characteristic.