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Question: Suppose you have a wealthy aunt Your aunt dies and leaves you a great deal of money (potentially). When you attend the reading of the will, you discover that she has bequeathed her millions to a "family incentive trust." As the lawyer reads the will, you discover that you only get the money if you get married, have children, stay with your spouse and raise your children, don't become dependent on drugs or alcohol, and if you continuously have a full-time job. (Note: Family incentive trusts are real and becoming very common.)

What does this evidence suggest about the slope of the labor-supply curve? Explain.

Microeconomics, Economics

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