The less freedom people are given to choose the date of their retirement,the
A)more elastic is the supply of labor.
B)less elastic is the supply of labor.
C)flatter is the labor supply curve.
D)smaller is the decrease in employment that will result from a tax on labor.

Question

Quizplus · Accepted Answer

When people have less freedom to choose the date of their retirement, the supply of labor becomes less elastic. This means that there is a smaller change in the quantity of labor supplied in response to changes in wages or other labor market conditions. A flatter labor supply curve would indicate a more elastic supply, which is not the case here. The size of the decrease in employment resulting from a tax on labor is not directly related to the elasticity of the labor supply curve, so option D is also not applicable.

The Less Freedom People Are Given to Choose the Date