Consider the labor market for public defense lawyers. Suppose the salaries paid to private sector lawyers increase. Which of the following statements is true? The opportunity cost of working as a public defense lawyer has increased. The wage for public defense lawyers will decrease. The labor supply of public defense lawyers will decrease.

Question

Quizplus · Accepted Answer

When salaries in the private sector increase, the opportunity cost of working as a public defense lawyer increases because lawyers could potentially earn more in the private sector. This could lead to a decrease in the labor supply of public defense lawyers as they might move to the private sector for better pay. The statement about wages for public defense lawyers decreasing is not necessarily true; in fact, their wages might need to increase to retain them.

Consider the Labor Market for Public Defense Lawyers