If the opportunity cost of working outside the home increases,then ________ the labor supply curve,assuming all else equal.

Question

Quizplus · Accepted Answer

An increase in the opportunity cost of working outside the home makes it less attractive to work in the labor market. As a result, people would prefer to spend more time on non-market activities, which leads to a decrease in the labor supply. A leftward shift in the labor supply curve implies that fewer people are willing and able to work at each wage rate. Therefore, the correct answer is A).

If the Opportunity Cost of Working Outside the Home Increases,then