Scenario 18-3
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour.
-Refer to Scenario 18-3. Assume that Sam has an upward-sloping labor supply curve. If the opportunity cost of Sam's leisure time increases, he will respond by working
A)more hours.
B)fewer hours.
C)an equal number of hours.
D)a number of hours that cannot be determined from the information. The labor demand curve is needed to make this determination.

Question

Quizplus · Accepted Answer

Sam's upward-sloping labor supply curve indicates that he will work more hours as the opportunity cost of his leisure time increases. This means that if he has the option to earn more money by working more hours, he will likely choose to do so in order to increase his income. Therefore, if the opportunity cost of his leisure time increases, he will respond by working more hours.

Scenario 18-3 Sam Has Two Jobs, One for the Winter and One