Which of the Following Best Explains Why the Market Labor

question 3

Multiple Choice

Which of the following best explains why the market labor supply curve is upward sloping,even though individual supply curves are normally backward bending?

• A)The statement is not true: market labor supply curves are also backward bending
• B)Market labor supply curves are "price-adjusted," whereas individual supply curves are not
• C)Lower wages in a given market increase the demand for labor,so more labor must be supplied to maintain labor market equilibrium
• D)Higher wages in a given market attract more workers away from other activities,more than compensating for any reduction in hours by individuals already in the market

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Definitions:

Wages, Rent, And Profit

The primary forms of income for labor, landowners, and capitalists respectively, derived from the factors of production: labor, land, and capital.

Natural Experiments

An empirical study in which the conditions of the study are determined by nature or by other factors outside the control of the investigators, but the process allows for the interpretation of causal relationships.

Wages, Rent, And Profit

These are components of income distribution in economics, with wages paid to labor, rent earned from land, and profit derived from capital investment.

Scientific Thinking

A method of inquiry that involves observing phenomena, asking questions, forming hypotheses, conducting experiments, and drawing conclusions based on evidence.