An increase in the participation rate of women in the U.S.labor force:
A) has shifted the supply of labor to the left.
B) resulted in a faster increase in wages.
C) has increased the demand for labor.
D) has shifted the supply curve of labor to the right.

Question

Quizplus · Accepted Answer

An increase in the participation rate of women in the U.S. labor force would result in an increase in the supply of labor, shifting the supply curve to the right. This is because more women are entering the labor force and are willing to work at the prevailing wage rate. As a result, the equilibrium wage rate would decrease and employment would increase. It is important to note that this would not necessarily result in a faster increase in wages, as the increased supply of labor could lead to a decrease in wages. However, it would increase the demand for labor as more workers are available to employers.

An Increase in the Participation Rate of Women in the U.S.labor