Question

The market supply curve for labor curve is upward-sloping because:_____________.

a) As the wage rises, most workers want to work fewer hours.
b) As the wage falls, most workers want to work more hours.
c) As the wage rises, most workers are willing to work more hours.
d) For most workers, as the wage rises, the preference for leisure time increases.

Answer 1

c) As the wage rises, most workers are willing to work more hours.

Step-by-step explanation:

Option “C” is correct because there is a direct relationship between the wage rate and the labor hours. If the wages increase then more people or labor are willing to work for more hours. If the wage falls then this fall in wage results in the fall in labor hours because more people will be less willing to work at a lower wage rate. Therefore this direct relationship between the wage rate and the number of labor results in an upward-sloping labor supply curve.