How does the​ labor-leisure trade-off determine the supply of​ labor? A. The supply of labor is no different than the supply of any other good or service in that it is primarily affected by production costs. In the case of​ labor, the dominant production cost is the cost incurred to acquire employable skills. The supply of labor is​ upward-sloping because higher wages are required to cover the expense of gaining more skills. B. An increase in the wage rate is an increase in the opportunity cost of​ leisure, and can therefore be expected to reduce the amount of leisure one wishes to consume. Choosing less leisure is equivalent to supplying more​ labor, thus yielding a positive relationship between the wage rate and the amount of labor supplied. C. Individuals typically trade off working versus leisure in an​ unplanned, unsystematic way. As a​ result, the supply of labor exhibits a bit of​ randomness, showing that higher wages sometimes increase the quantity of labor time supplied and sometimes decrease the quantity of labor time supplied. D. When an individual chooses an amount of leisure to​ consume, he is simultaneously choosing a quantity of labor to supply. Since leisure is a normal​ good, an increase in the wage induces more consumption of leisure and therefore a smaller quantity of labor supplied.

B

Explanation:

Because wants are unlimited and the resources available to satisfy these wants are limited, economic agents must undergo trade-off

Trade-off is the opportunity cost of taking a particular decision

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives

According to the law of supply, if wage rate increases the supply of labour would increase. If wage rate increases, the number of hours that labour would want to work would increase. Thus, there is a positive relationship between wage rate and labour supply. The supply curve for labour is positively sloped. Because time is finite, as the number of hours labour works increases, labour would have less time for leisure.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.