Which of the following is TRUE?
I. The market supply curve for labor can be upward sloping or downward sloping.
II. As wages increase, the market labor supply curve slopes upward because some people are willing to work more hours.
III. As wages increase in the health care industry, the market labor supply curve slopes upward because some workers from other industries decide to get jobs in health care.

Question

Quizplus · Accepted Answer

Statement II is true, as an upward sloping labor supply curve means that individuals are willing to work more hours as wages increase. Statement III is also true, as some workers from other industries may enter the health care industry due to higher wages. However, statement I is false, as the market supply curve for labor is generally upward sloping due to the law of supply.

Which of the Following Is TRUE