As stock prices rise and workers' wealth increases,workers will increase the quantity supplied of labor because they will want to buy more stock.

Question

Quizplus · Accepted Answer

The statement is incorrect. An increase in stock prices and workers' wealth may actually decrease the quantity supplied of labor as workers may choose to work less and enjoy their increased wealth instead of working longer hours. The relationship between stock prices and labor supply is complex and depends on various factors.

As Stock Prices Rise and Workers' Wealth Increases,workers Will Increase