In the labor supply curve, the parameter represents:
A) consumption per person.
B) the ratio.
C) the marginal product of capital.
D) the overall magnitude of labor supply.
E) the marginal utility of leisure.

Question

In the labor supply curve, the parameter  represents:
A) consumption per person. 
B) the ratio. 
C) the marginal product of capital. 
D) the overall magnitude of labor supply. 
E) the marginal utility of leisure.

Quizplus · Accepted Answer

The parameter 11eab38d_06f4_abf3_a5fb_371ee422a2d1_TB6622_00 in the labor supply curve represents the overall magnitude of labor supply, i.e. how much labor individuals are willing and able to supply at different wage rates. This is determined by factors such as the availability of alternative sources of income, the level of education and training, and other individual characteristics. Therefore, the best choice is D. The other options are not relevant to the labor supply curve.

In the Labor Supply Curve, the Parameter Represents