Which one of the following statements is NOT true?
A) An increase in immigration rates increases the size of the labor force and leads to a rightward shift of the labor supply curve.
B) An increase in wage rate increases the opportunity cost of free time and therefore increases the quantity supplied of labor.
C) An increase in the opportunity of work increases the amount of labor supplied and leads to a rightward shift of the labor supply curve.
D) An increase in number of retiring workers because of demographic change leads to a decrease in labor supply and a leftward shift of the labor supply curve.

Question

Quizplus · Accepted Answer

C) is not true because it conflates the increase in the opportunity of work with an automatic increase in the amount of labor supplied. While more job opportunities can encourage more people to enter the labor market, it doesn't directly shift the labor supply curve without considering factors like wages, preferences, and the availability of workers.

Which One of the Following Statements Is NOT True