The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?
A) work and wage
B) work and leisure
C) wage and productivity
D) technology and wage

Question

Quizplus · Accepted Answer

The labor supply curve represents the trade-off people face between work and leisure. As the wage rate increases, people are more likely to enter the workforce since the opportunity cost of leisure time becomes higher. On the other hand, as the wage rate decreases, people may choose to work less and enjoy more leisure time instead. Therefore, the labor supply curve is upward-sloping, indicating that as the wage rate increases, the quantity of labor supplied also increases.

The Labor Supply Curve Is Fundamentally a Representation of the Trade-Off