Which of the following statements is FALSE?
A) As people work more, the opportunity cost of work increases.
B) An increase in the immigration rate leads to an increase in the labor supply.
C) If the opportunity cost of work increases, then the labor supply will decrease.
D) An increase in the wage of labor shifts the labor supply curve to the right,

Question

Quizplus · Accepted Answer

An increase in the wage of labor typically leads to an increase in the quantity of labor supplied, not a shift of the labor supply curve to the right. The labor supply curve itself represents the relationship between wage and the quantity of labor supplied at those wage levels. A rightward shift would imply that at every wage level, more labor is supplied for reasons other than the wage increase, such as population growth or changes in work preferences.

Which of the Following Statements Is FALSE