Question
Using the economic decision rule and opportunity cost, explain why an increase in the wage rate increases quantity of labor supplied. ANSWER CAN BE MORE
Using the economic decision rule and opportunity cost, explain why an increase in the wage rate increases quantity of labor supplied.
ANSWER CAN BE MORE THAN 1
An increase in the wage rate increases the opportunity cost of leisure.
A person would increase the quantity of labor supplied because the marginal cost of working has increased.
A person would increase the quantity of labor supplied because the marginal benefit of working has increased.
An increase in the wage rate decreases the opportunity cost of leisure.
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
