According to the classical model,workers chose a level of labor that equates the
A)real wage and marginal product of labor.
B)nominal wage and marginal product of labor.
C)the marginal utility of consumption and the marginal disutility of lost leisure.
D)the marginal utility of consumption with the real wage.

Question

Quizplus · Accepted Answer

In the classical model, workers choose a level of labor that equates the marginal utility of consumption (what they gain from working more and earning more) with the marginal disutility of lost leisure (what they lose in terms of leisure time by working more). This balance determines their labor supply.

According to the Classical Model,workers Chose a Level of Labor