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What is the impact of a rising wage on the total hours of labor supplied to the market?
What is the impact of a rising wage on the total hours of labor supplied to the market?
- 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.
Why does the labor supply curve not necessarily slope up with a rising wage?
Why does the labor supply curve not necessarily slope up with a rising wage?
- 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)
What pattern does the supply curve of labor by single individuals usually exhibit?
What pattern does the supply curve of labor by single individuals usually exhibit?
- Downward-sloping
- Horizontal
- Upward-sloping
- Backward-bending (correct)
Why is the market supply of labor usually not backward bending?
Why is the market supply of labor usually not backward bending?
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