A net increase in people's preferences for work relative to leisure in a particular market will:
A)increase labor supply,reducing the wage rate
B)decrease labor supply,increasing the wage rate
C)increase labor demand,increasing the wage rate
D)decrease labor demand,reducing the wage rate

Question

Quizplus · Accepted Answer

If people have a greater preference for work relative to leisure, it means they are willing to work more hours or demand a higher wage for the same amount of work. This will increase labor supply (more people are willing to work), which will lead to a reduction in the wage rate (since there are more workers available for the same amount of work). Therefore, A is the best choice.

A Net Increase in People's Preferences for Work Relative to Leisure