In an income-leisure diagram,the wage rate is graphically represented by the:

Question

Quizplus · Accepted Answer

The slope of the budget line represents the wage rate, which is the amount of money a person can earn per unit of time. A steeper slope indicates a higher wage rate and a flatter slope indicates a lower wage rate. The indifference curves represent the trade-off between income and leisure, but they do not directly show the wage rate. The curvature of the indifference curves reflects the degree of substitutability between income and leisure, but it does not directly indicate the wage rate. The tangency of the budget line with an indifference curve represents the optimal choice of income and leisure given the wage rate, but it does not directly show the wage rate.

In an Income-Leisure Diagram,the Wage Rate Is Graphically Represented by The