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8 - As wages increase the opportunity cost of leisure...

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As wages increase: the opportunity cost of leisure decreases. the opportunity cost of leisure increases. more individuals are likely to travel long distance by bus rather than by plane. more individuals are likely to prepare their meals "from scratch" rather than using prepared foods. Feedback: An increase in the wage rate increases the opportunity cost of leisure. The supply curve of labor: does not exist. People cannot be studied as if they were ordinary commodities. is vertical since everyone has to work. is horizontal since everyone is paid the going wage. is normally upward sloping (up to a point). Feedback: Like a typical supply curve, the supply of labor curve is upward sloping to a point. The demand curve for labor: does not exist. You can't apply the tools of economics to the study of human interaction. is downward sloping. is vertical since firms have to have employees to get the job done no matter what. is horizontal since employees get paid the going market wage. Feedback: Like a typical demand curve, the demand for labor curve is downward sloping. When we say that the demand for labor is a derived demand, we mean: the demand is based on commonly derived ethical norms applicable to our society. the demand is derived from commonly understood rules of economic theory. the demand is derived from or based on the value of the additional goods and services that are produced when a firm hires labor. that the demand is a derivative of the overall socio-economic and political system including all of its philosophical aspects. Feedback: The demand for labor is "derived" or determined from the demand for the good it is used to produce.
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Highly-paid professional athletes are generally: paid a salary approximating their marginal revenue product.
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