In General, the Labour Supply Curve

question 179

Multiple Choice

In general, the labour supply curve

• A)slopes downward because firms will hire fewer workers at higher wages.
• B)slopes upward because as the wage rises, the opportunity cost of leisure increases.
• C)is vertical at the equilibrium wage rate.
• D)is perfectly elastic at the equilibrium wage rate.

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Definitions:

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Vesting Rights

Are guaranteed rights to receive pension benefits.

Pension Plans

Retirement savings plans offered by employers, providing employees with a specific monthly income upon retirement.

Pay-for-Knowledge Approach

A compensation strategy where employees are paid based on their skill sets and the knowledge they bring to the job.