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. If Sam takes fewer hours of leisure in the winter than in the summer, we can assume that his labor supply curve for the range of earnings in this example
A)is horizontal.
B)is vertical.
C)is upward sloping.
D)has a backward-sloping portion.

Question

Quizplus · Accepted Answer

The fact that Sam takes fewer hours of leisure in the winter than in the summer implies that he values his winter job more than his summer job. This suggests that his labor supply curve is upward sloping, meaning that he is willing to supply more hours of work at a higher wage rate.

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