Which of the following factors has significantly increased the supply of labor in the United States since 1950?
A)a large increase in the substitution effect as a result of higher wages
B)a low birth rate and an aging population
C)an increase in the number of people who have received college degrees
D)an increase in the labor force participation rate of women

Question

Quizplus · Accepted Answer

The increase in the labor force participation rate of women has significantly increased the supply of labor in the United States since 1950. As more women entered the workforce, the overall labor force expanded, leading to an increase in the supply of labor. The other options are not accurate: A is incorrect because the substitution effect is a result of changes in relative prices, not wages; B is incorrect because a low birth rate and an aging population would decrease the supply of labor; and C is incorrect because an increase in the number of people who have received college degrees does not necessarily increase the supply of labor.

Which of the Following Factors Has Significantly Increased the Supply