1.The market supply curve for labor curve is upward-sloping because a) As the wa
ID: 1202954 • Letter: 1
Question
1.The market supply curve for labor curve is upward-sloping because a) As the wage rises, most workers want to work fewer hours. b)As the wage falls, most workers want to work more hours. c)As the wage rises, most workers are willing to work more hours. d) For most workers, as the wage rises, the preference for leisure time increases.
2 As marginal physical product diminishes, marginal revenue product
3. For a minimum wage to have any impact on a labor market, it must be set at a level
4. Because a union is a form of monopoly, it must be concerned about the ________ slope of the demand curve for labor.
a)Also diminishes.Explanation / Answer
Q1. Labor supply curve indicates the quantity supplied of labor at different wage rates.
Its upward sloping shape indicates that quantity supplied of labor increases as wage rate increases. In other words, this shape (upward sloping) indicates that as the wages rise, workers are willing to work more or most workers are willing to work more hours.
Hence, the correct answer is option (c).
Q3. Minimum wage acts as price floor. A price floor can only be effective when it is set above the equilibrium price.
So, being a variant of price floor, minimum wage will be able to cast any impact on labor market only in case when it is set at a level which is higher than the equilibrium wage.
Hence, the correct answer is option (a).
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