When an increase in marginal productivity increases workers' nonlabor income,the effect on the quantity of labor supplied is ambiguous.

Question

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When workers' nonlabor income increases, they may choose to work less and enjoy a better quality of life with their increased nonlabor income, or they may choose to work more because their overall income potential has increased. Therefore, the effect on the quantity of labor supplied is ambiguous.

When an Increase in Marginal Productivity Increases Workers' Nonlabor Income,the