4 Questions
What is the impact of a rising wage on the total hours of labor supplied to the market?
It brings more workers into the market and may have an ambiguous effect on each worker's hours.
Why does the labor supply curve not necessarily slope up with a rising wage?
Because it attracts new workers into the market and may lead to people working fewer hours.
What pattern does the supply curve of labor by single individuals usually exhibit?
Backward-bending
Why is the market supply of labor usually not backward bending?
Because higher wage rates induce people to work fewer hours.
Explore the relationship between wage rates and total hours of labor supplied in the market. Understand how a change in wage affects the labor supply curve and the behavior of individual workers.
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