Final answer:
In the standard labor supply model, hours of work or hours worked are graphed on the vertical axis, while consumption/income is graphed on the horizontal axis. The correct answer is A.
Step-by-step explanation:
In the standard labor supply model, hours of work or hours worked are graphed on the vertical axis, while consumption/income is graphed on the horizontal axis.
This means that the quantity of hours worked or hours of work is shown on the vertical axis, and the consumption/income level is shown on the horizontal axis.
In the standard labor supply model, the real wage is graphed on the vertical axis and hours of leisure are graphed on the horizontal axis.
In the standard labor supply model, real wage is graphed on the vertical axis and hours of leisure are graphed on the horizontal axis. Therefore, the correct option is B. consumption/income; hours of leisure. This framework is utilized to understand how individuals make choices between labor and leisure given their wage rate. As the real wage rate increases, workers are incentivized to substitute leisure for labor, thus increasing hours worked. Conversely, if the real wage decreases, workers may choose more leisure over labor, thereby reducing hours worked.