A)The labor supply curve is downward sloping.
B)The labor supply curve is upward sloping.(True Answer )Correct
C)The income effect denominates the substitution effect.
D)The worker earns $6.00 an hour.

Question

A)The labor supply curve is downward sloping. 
B)The labor supply curve is upward sloping.(True Answer )Correct 
C)The income effect denominates the substitution effect. 
D)The worker earns $6.00 an hour.

Quizplus · Accepted Answer

The statement "The labor supply curve is upward sloping" is true, as an increase in wages would incentivize workers to enter the workforce or work longer hours. A decrease in wages would have the opposite effect. The other choices are either irrelevant or incorrect.

A)The Labor Supply Curve Is Downward Sloping