A)At 13 hours of leisure and income of $45.19, the worker earns a wage of $4.17 an hour.
B)The labor supply curve is downward sloping.(True Answer )Correct
C)The substitution effect dominates the income effect.
D)This worker chooses to work more hours if paid higher wages.

Question

A)At 13 hours of leisure and income of $45.19, the worker earns a wage of $4.17 an hour. 
B)The labor supply curve is downward sloping.(True Answer )Correct 
C)The substitution effect dominates the income effect. 
D)This worker chooses to work more hours if paid higher wages.

Quizplus · Accepted Answer

The statement "The labor supply curve is downward sloping" is true.

A)At 13 Hours of Leisure and Income of $45