A.   FALSE

B.   TRUE

A.   decreases as wages get higher.

B.   remains unchanged as wages get higher.

C.   increases as wages get higher.

D.   has nothing to do with wages.

A.   the opportunity cost of an hour of leisure declines.

B.   the opportunity cost of an hour of leisure increases.

C.   neither the opportunity cost of an hour of leisure nor the quantity of labor supplied is likely to change.

D.   the quantity of labor supplied always declines.

A.   when wages decline, the quantity demanded of leisure declines, and workers increase the quantity of labor supplied.

B.   when workers decrease their quantity of labor supplied.

C.   when wages rise, the quantity demanded of leisure increases, and workers decrease the quantity of labor supplied.

D.   when wages rise, the quantity demanded of leisure declines, and workers increase the quantity of labor supplied.

A.   when wages rise, the quantity demanded of leisure increases, and workers decrease the quantity of labor supplied.

B.   when wages decrease, the quantity demanded of leisure increases, and workers increase the quantity of labor supplied.

C.   when wages rise, the quantity demanded of leisure decreases, and workers increase the quantity of labor supplied.

D.   when wages rise, the quantity demanded of leisure increases, and workers decide to increase the amount of hours worked.

A.   if workers decide to decrease the amount of leisure hours consumed. This is due to the fact that some workers have a target level of income.

B.   if workers decide to decrease the amount of hours worked if wages rise. This is due to the fact that some workers have a target level of income.

C.   if workers decide to increase the amount of hours worked if wages rise. This is due to the fact that some workers don't have a target level of income.

D.   if the amount of hours worked increases if wages rise.

A.   the substitution effect dominates the income effect.

B.   eventually it will become backward bending.

C.   the income effect dominates the substitution effect.

D.   a wage increase will lead to a decrease in the quantity of labor supplied.

A.   the income effect dominates the substitution effect on that portion of the supply curve.

B.   an increase in wages will lead to an increase in the quantity of labor supplied.

C.   the substitution effect dominates the income effect on that portion of the supply curve.

D.   people have not yet reached their target income.

A.   for a town should equal the elasticity of labor supply for a state.

B.   should be greater for a town than for a state because people are more likely to consider work in a neighboring town than in another state.

C.   should be greater for a state than for a town because people can travel more easily between states than between towns.

D.   for a town is not related to the elasticity of labor supply for a state.

A.   unit-elastic supplies of labor.

B.   inelastic supplies of labor.

C.   negative elastic supplies of labor.

D.   elastic supplies of labor.