Scenario 14.1 A Worker in Firm a Earns an Income of $5,000

question 51

Multiple Choice

Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-Which of the following best explains the shape of the individual labor-supply curve?

• A)The individual labor-supply curve is exactly like any supply curve, it always has a positive slope.
• B)The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure.
• C)The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates.
• D)The individual labor-supply curve must be vertical because each person can work only eight hours per day.
• E)The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.

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Definitions:

Sympathetic

Characterized by feelings of compassion or understanding towards the situations of others.

Nervous System

The body’s communication network that utilizes neural cells to transmit information, coordinating voluntary and involuntary actions and transmitting signals between different parts of the body.

Parietal Lobe

A region of the cerebral cortex that processes sensory information such as touch, temperature, and pain.

Wernicke's Aphasia

A language disorder that affects the ability to understand spoken language, often resulting from damage to the Wernicke's area of the brain.