In the indifference curve-budget line model of labor supply,labor consists of

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Quizplus · Accepted Answer

In the indifference curve-budget line model of labor supply, labor refers to working in the marketplace for the going wage. This is represented by the budget line, which shows the combination of leisure and consumption that can be achieved with a given wage rate and amount of non-labor income. The indifference curve represents the worker's preferences for leisure and consumption. The optimal combination of leisure and consumption is where the indifference curve is tangent to the budget line, which determines the amount of labor supplied. Hence, choice B is the best answer.

In the Indifference Curve-Budget Line Model of Labor Supply,labor Consists