Which of the following statement is FALSE?
A) The shape of the labor supply curve is based on the trade-off between income and free time.
B) If the opportunity cost of work decreases, then the labor supply curve shifts to the right.
C) The more time that an individual spends working, the more that the opportunity cost of work decreases.
D) As the wage rate increases, the quantity of labor supplied increases.

Question

Quizplus · Accepted Answer

The statement C is false because the more time an individual spends working, the more the opportunity cost of work increases, not decreases. This is because the opportunity cost of working more hours is the leisure time or alternative activities that one has to give up, which becomes more valuable as more time is spent working.

Which of the Following Statement Is FALSE