Which of the following describes an individual’s labor supply curve when the substitution effect is stronger than the income effect?
a. U-shaped
b. backward bending
c. upward sloping
d. downward sloping
c. upward sloping
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Refer to Figure 4-8. What is the value of producer surplus after the imposition of the ceiling?
A) $40,000 B) $100,000 C) $300,000 D) $430,000
Both the permanent-income and life-cycle hypotheses are based on the crucial assumption of ________ expectations
A) rational B) adaptive C) backward-looking D) forward-looking
A firm practicing direct price discrimination will charge lower prices to
a. Consumers with an elastic demand b. All consumers c. Consumers known to have an inelastic demand d. Consumers known to have a unitary elastic demand
One of the important conditions needed for economic growth is
a. rule of law. b. strong government. c. high average income. d. large government safety net.