In Figure 30.1, the shift in the labor supply curve from S₁ to S₂ means that A) The marginal utility of labor has decreased. B) Workers are being paid higher wage rates, given their taste for work. C) The marginal utility of labor relative to leisure has increased. D) The demand for labor has increased, and this encourages more labor force participation.

Question

Quizplus · Accepted Answer

The Answer of In Figure 30.1, the shift in the labor supply curve from S₁ to S₂ means that A) The marginal utility of labor has decreased. B) Workers are being paid higher wage rates, given their taste for work. C) The marginal utility of labor relative to leisure has increased. D) The demand for labor has increased, and this encourages more labor force participation.