The labor supply curve is backward bending because
A) as the wage rate rises, the substitution effect becomes larger than the income effect.
B) as the wage rate rises, the income effect becomes larger than the substitution effect.
C) an increase in the wage rate shifts the supply of labor curve leftward at higher wages.
D) an increase in the wage rate shifts the supply of labor curve rightward at higher wages.
B
You might also like to view...
U.S. public policy discourages saving because
a. other things the same, taxes increase the return from savings. b. means tested programs such as Medicaid provide lower benefits to those who did not save. c. none of parents' bequest to their children is taxed. d. some forms of capital income are taxed twice.
Which of the following would most likely cause a rightward shift in a demand curve?
a. a discovery about a product being made in sweat shops b. a recall of an automobile c. a celebrity promoting a sports drink d. an outbreak of E. coli in chicken
Use the table below to answer the following question.UnitsMaximum Willingness to PayMarket Price1$14$102121031010481056106410What is the value of consumer surplus?
A. $6 B. $54 C. $44 D. $12
________: level of output at which average total costs equal average revenue or market price
Fill in the blank(s) with correct word