An upward-sloping labor supply curve means that
A)workers prefer to buy more leisure time when their incomes increase.
B)workers prefer to supply less labor when wages are high.
C)an increase in the opportunity cost of leisure leads workers to increase the quantity of labor they supply.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An upward-sloping labor supply curve means that as the wage rate increases, the opportunity cost of leisure also increases. Therefore, workers increase the quantity of labor they supply, which implies that they supply more labor when wages are high. Option A is incorrect because it suggests that an increase in income leads to a decrease in labor supply, which is inconsistent with an upward-sloping labor supply curve. Option B is also incorrect because it implies that workers prefer to work less when wages are high, which contradicts the law of supply.

An Upward-Sloping Labor Supply Curve Means That