If workers suddenly decide to value more their leisure time than before,this
A) shifts the labor supply curve to the left, resulting in a wage increase and less workers hired.
B) shifts the labor supply curve to the right, resulting in a wage increase and less workers hired.
C) shifts the labor supply curve to the left, resulting in a wage decrease and less workers hired.
D) shifts the labor supply curve to the right, resulting in a wage increase and more workers hired.

Question

Quizplus · Accepted Answer

If workers value their leisure time more, they will have less inclination to work long hours or take up additional employment. This reduces the labor supply in the market, and hence, the supply curve shifts leftwards. As a result, firms will have to increase wages to attract the scarce labor, and they will also hire fewer workers. Thus, the correct choice is A.

If Workers Suddenly Decide to Value More Their Leisure Time