With increasing urbanization, there is usually a decrease in the opportunity cost of work. All else equal, the impact of increasing urbanization on the labor market can be shown by a _____ shift of the labor _____ curve.
A) leftward; supply
B) rightward; supply
C) leftward; demand
D) rightward; demand

Question

Quizplus · Accepted Answer

Urbanization typically increases the opportunity cost of not working due to higher living expenses and more job opportunities, leading to more people entering the workforce. This is represented by a rightward shift of the labor supply curve, as more individuals are willing to work at each wage level.

With Increasing Urbanization, There Is Usually a Decrease in the Opportunity