When a labor supply curve is backward-bending, the elasticity of labor supply in the backward-bending portion is

A. Negative.
B. Greater than 1.
C. Zero.
D. Positive but less than 1.


Answer: A

Economics

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Ben quit his job as an economics professor to become a golf professional. He gave up his salary ($40,000 . and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings (profit) were $45,000 . Ben's economic profits were

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