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The Quantity of Labor Supplied Increases as the Real Wage

Question 62

Multiple Choice

The quantity of labor supplied increases as the real wage rises because


A) the opportunity cost of working increases.
B) the quantity of labor demanded increases.
C) labor force participation decreases so that only serious workers are left in the labor force.
D) the opportunity cost of leisure rises.
E) higher real wages mean that nominal wages have increased.

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