Which of the following statements about labor supply is true?
A) The wage rate has no effect on labor supply decisions, and the typical labor supply curve is perfectly vertical.
B) The wage rate is the only factor affecting labor supply decisions, and the typical labor supply curve is upward sloping.
C) Labor supply decisions are affected by wage and nonwage factors, and the typical labor supply curve is upward sloping.
D) Labor supply decisions are affected by nonwage factors such as location and psychological rewards, and because of this the typical labor supply curve is horizontal at the going wage rate.
Correct Answer:
Verified
Q36: The demand curve for labor:
A) slopes downward.
B)
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Q38: Given the following table, a product price
Q39: The supply curve for labor is:
A) vertical.
B)
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Q42: Which of the following statements concerning the
Q43: "Psychic" income refers to:
A) psychological rewards that
Q44: A decrease in the equilibrium wage rate
Q45: A decrease in the equilibrium wage rate
Q46: The basic supply and demand model predicts
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