If a country's working-age population declines and its wealth increases, then the labor supply curve 1. 1. shifts to the left if the effect of the change in wealth is bigger than the effect of the change in

When focusing on a married couple, one person’s non-labor income includes the laborearnings of his/her partner. Using a graph of budget constraints and indifference curves,describe what would happen to the labor supply of one spouse if the other experiences aninvoluntary job loss. Your answer does not depend on whether the spouse you’regraphing is initially supplying labor or not.

This figure depicts a model of labour supply and consumption for the US in 1900 and 2013. The wage rate is shown to have increased between the two years. Which of the following are true? (Ignore the dashed orange line) Consumption ($) 300 225 150 75 0 8 10 12 14 D 16 18 Hours of free time 20 ← a. The income effect dominates the substitution effect, leading to a reduction in the hours of work. b. According to this model, Americans work more and consume more in 2013 than in 1900 ☐c. The substitution effect dominates the income effect, leading to an increase in the hours of work. d. According to this model, Americans consume more and enjoy more free time in 2013 than in 1900 22 24