Labor supply is determined by several factors, which includes age composition, number of working hours, number of hours worked and also:
A. Height of workers.
B. Ethnicity of workers.
C. Wage rate of workers.
D. Gender of workers.
Which one above is the right answer?
3 answers
C. Wage rate of workers.
Are you sure? Explain your answer.
Yes, I am sure.
The wage rate of workers is a crucial factor in determining labor supply. Workers are more likely to supply their labor when they are offered higher wages, as they are incentivized to work more to earn more income. On the other hand, if the wage rate is low, workers may choose to work less or not at all. Therefore, the wage rate directly affects the level of labor supply in the economy.
While factors such as height, ethnicity, and gender may indirectly impact labor supply in certain situations, the wage rate is the most direct and significant determinant of labor supply.
The wage rate of workers is a crucial factor in determining labor supply. Workers are more likely to supply their labor when they are offered higher wages, as they are incentivized to work more to earn more income. On the other hand, if the wage rate is low, workers may choose to work less or not at all. Therefore, the wage rate directly affects the level of labor supply in the economy.
While factors such as height, ethnicity, and gender may indirectly impact labor supply in certain situations, the wage rate is the most direct and significant determinant of labor supply.