Tastes and preferences are relevant to individual choices for consumption but not relevant to choices for supplying labor.

Question

Quizplus · Accepted Answer

Tastes and preferences can also affect an individual's choice of occupation or industry, which in turn affects their labor supply. For example, if someone has a strong preference for working outdoors, they may choose a job in landscaping or construction over a desk job, even if the pay is lower. Therefore, tastes and preferences can be relevant to choices for supplying labor.

Tastes and Preferences Are Relevant to Individual Choices for Consumption