In Figure 30

question 40

Multiple Choice

In Figure 30.1, the shift in the labor supply curve from S₁ to S₂ means that

• A)The marginal utility of labor has decreased.
• B)Workers are being paid higher wage rates, given their taste for work.
• C)The marginal utility of labor relative to leisure has increased.
• D)The demand for labor has increased, and this encourages more labor force participation.

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