The Labor Supply Curve Is Typically Upward Sloping Because as the Wage

question 77

Multiple Choice

The labor supply curve is typically upward sloping because as the wage rate rises,

• A)it will exceed the reservation wages of more individuals
• B)the opportunity cost of leisure falls
• C)the demand for the good produced by labor increases
• D)the marginal revenue product of labor falls
• E)the marginal revenue product of labor rises

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