Labor Supply and Wage Rate Relationship

It reduces the number of workers in the market and increases the hours worked by each worker.

It brings more workers into the market and may have an ambiguous effect on each worker's hours. (correct)

It leads to a decrease in the total hours of labor supplied to the market.

It has no impact on the total hours of labor supplied to the market.

Because of population growth due to births and migration.

Because of a decrease in job switchers entering the labor market.

Because higher wage rates always induce people to work fewer hours.

Because it attracts new workers into the market and may lead to people working fewer hours. (correct)

Downward-sloping

Horizontal

Upward-sloping

Backward-bending (correct)

<p>Because higher wage rates induce people to work fewer hours.</p> Signup and view all the answers