In Terms of Labour Supply,the Income Effect of a Higher

question 223

Multiple Choice

In terms of labour supply,the income effect of a higher wage causes a(n) :

• A) decrease in leisure time.
• B) increase in the quantity of labour supplied.
• C) decrease in the quantity of labour supplied.
• D) reduction of leisure time to zero.

---

Definitions:

Price

The amount of money required to purchase a good, service, or asset, reflecting its value as determined by supply and demand.

Units Produced

A measure of output that quantifies the total number of units of a product made by a company or industry within a specified period.

Profit-Maximizing Price

The selling price at which a company can achieve the highest profit, considering its cost and demand for the product.

Monopolist

A single supplier in a market that controls all the goods or services of a particular type, without any competitors.