The less freedom people are given to choose the date of their retirement the:
A)more elastic the supply of labour
B)less elastic the supply of labour
C)flatter the labour supply curve
D)larger the reduction in output caused by a tax on labour

Question

Quizplus · Accepted Answer

If people are not free to choose their retirement date, the supply of labor becomes less elastic, meaning that the quantity of labor supplied does not respond as much to changes in wage rates. This is because people are forced to work longer regardless of changes in wage rates, reducing the flexibility of the labor market.

The Less Freedom People Are Given to Choose the Date