Question

Which of the following will cause an increase in the supply of labor?

A. An increase in the wage rate

B.An increase in the marginal product of labor

C. An increase in the tax rates applied to labor income

D. An increase in the desire for greater leisure time

E. An increase in the retirement age

Answer 1

An increase in the marginal product of labor will cause an increase in the supply of labor.

Answer 2

B. An increase in the marginal product of labor.