Question

PLS CAN ANYONE REVIEW CAREFULLY AND HELP ? PLS

25.......The market supply of labor curve has a positive slope if higher wages induce households to choose

A.

leisure rather than supplying labor in the labor market.

B.

supplying labor in the labor market rather than leisure.

C.

work less hours because they are getting paid more.

D.

demanding labor rather than supplying it.

30.. , If a firm finds​ that, at its current level of​ employment, VMP​ > W  it will

A.

increase the amount of labor it hires.

B.

be maximizing profits.

C.

be minimizing profits.

D.

decrease the amount of labor it hires.

Answer 1

25 - Option B

Supplying labor in the labor market rather than leisure

This is because when the labor gets involved in leisure the curve starts bending backward which is not happening in this case. Positive slope shows the increasing labor supply.

26 - Option A

Increase the amount of labor it hires.

This is because the goal is to reach VMP = W so that the profit can be maximised at that level.