Along an upward-sloping labor supply curve, as the wage rate increases, the opportunity cost of leisure ________, causing individuals to supply a ________ quantity of labor.

Question

Quizplus · Accepted Answer

As the wage rate increases, the opportunity cost of leisure increases because individuals can earn more by giving up leisure time to work. Therefore, they are more likely to supply a greater quantity of labor.

Along an Upward-Sloping Labor Supply Curve, as the Wage Rate