Question 1 4 pts Which of the following best explains the shape of the individua

Question

Question 1 4 pts Which of the following best explains the shape of the individual labor-supply curve? OThe individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive. O The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates. The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure O The individual labor-supply curve is exactly like any supply curve, it always has a positive slope. O The individual labor-supply curve must be vertical because each person can work only eight hours per day.

Explanation / Answer

Q.1 Shape of individual labor supply is sloped upward at lower wage rate and then bends back at higher wage rates. Because people will substitute leisure for paid work time and so higher wages lead to a decrease in the labor supply and so less labor time being offered.

Q.2 Human capital refers to acquired skill and productivity of workers.

Q.3 Results in occupational crowding is statistical discrimination and imperfect information.

Q4. Comparable worth.

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