The Quantity of Labor Supplied Increases as the Real Wage

question 303

Multiple Choice

The quantity of labor supplied increases as the real wage rises because

• A)higher real wages mean that nominal wages have increased.
• B)the opportunity cost of working increases.
• C)the quantity of labor demanded increases.
• D)the opportunity cost of leisure rises.
• E)labor force participation decreases so that only serious workers are left in the labor force.

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Definitions:

Charitable Subscription

A pledge or donation made to a charitable organization or cause.

Probability of Reliance

The likelihood that someone will depend on a particular piece of information or assertion in making a decision.

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The price of a product or service that has been publicly communicated to potential buyers through various marketing channels.

Reasonable Value

A fair market price or level of compensation that would be deemed equitable under normal circumstances.