Which of the Following Helps to Explain Why the Supply

question 262

Multiple Choice

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

• A)The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping so is the labor supply curve.
• B)As the wage rate rises, the income effect causes the quantity of labor 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:

Quantity

A specified amount or number of items.

Writing

The physical manifestation of language in the form of symbols or marks on surfaces like paper, used to communicate thoughts and ideas.

Benefit

An advantage or profit gained from something, often used in legal terms to describe gains in contracts or employment.

Debt

Money that is owed or due to another individual, entity, or institution.