The unconstrained supply of labor refers to the amount a household ________ within a given period at the current wage rate if it could find the work.
A) would like to work
B) chooses not to work
C) is forced to work
D) actually works

Question

Quizplus · Accepted Answer

The unconstrained supply of labor refers to the amount of work a household would like to do if it could find it at the current wage rate. This means that the household is willing and able to work that amount, regardless of whether or not they actually end up working that much. Choice B and C suggest that the household is actively choosing not to work or being forced to work, which is not necessarily the case. Choice D suggests that the household is currently working that amount, but this may not be true if they are currently unemployed or underemployed.

The Unconstrained Supply of Labor Refers to the Amount a Household