A higher wage _____ the price of _____ and _____ workers' incomes.The result pulls the quantity of labor supplied in _____ direction(s).
A)increases;leisure;increases;opposite
B)increases;leisure;increases;the same
C)reduces;work effort;reduces;opposite
D)reduces;labor;increases;the same

Question

Quizplus · Accepted Answer

A higher wage increases the price of leisure because the opportunity cost of not working increases. It also increases workers' incomes, which gives them more purchasing power to buy goods and services, potentially leading to increased demand for labor. However, the higher wage also makes it more expensive for employers to hire workers, which could decrease the demand for labor. These opposing effects result in an uncertain direction for the quantity of labor supplied, but generally, it is expected to move in the opposite direction to the wage change.

A Higher Wage _____ the Price of _____ and _____

A Higher Wage ___ the Price of _ and ___