Final answer:
Factors affecting the decision to work include job desirability, government policies, labor force size, and education. The key assumption in labor supply is that workers seek to maximize their well-being. Other variables like cultural attitudes and mobility also play a role.
Step-by-step explanation:
The factors affecting the decision to work include the attractiveness of a job compared to alternatives, government policies, the size of the labor force, and the required education for the job. A key assumption of the supply of labor is that workers will generally aim to maximize their well-being, whether through higher wages, benefits, or work satisfaction. Additionally, other influences such as cultural attitudes towards work, mobility, and demographic changes can impact labor supply decisions.
Self Check Question Responses:
- The factors of production include land, labor, capital, and entrepreneurship. Labor is often considered the most important because it is directly related to the human capital that carries out production.
- Natural resources can be renewable or non-renewable, and they are essential for production as they provide the raw materials.
- The two forms of labor are physical and intellectual. Labor can be increased by improving education and training to enhance skills, or by increasing the number of workers through immigration or incentivizing higher birth rates.