If a country's working-age population declines and its wealth increases,then the labor supply curve
A)shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population.
B)shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population.
C)shifts to the left.
D)shifts to the right.

Question

Quizplus · Accepted Answer

The question highlights that the working-age population is declining. This means that there are fewer workers available than before, which would cause a shift to the left in the labor supply curve. The increase in wealth of the country is not relevant to the direction of the shift, as it does not affect the number of workers available. Therefore, the correct answer is choice C.

If a Country's Working-Age Population Declines and Its Wealth Increases,then