When is an individual's labor supply curve most likely to be backward bending?
a. When substitution effects are large.
b. When income effects are large.
c. When wages are relatively low.
d. When nonlabor income is low.
b. When income effects are large.
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Which of the following statements is true of the gains to trade?
A) The gains to trade expand as trading partners become more alike. B) The gains to trade shrink as trading partners become more alike. C) The trading nations can enjoy gains to trade even when none of these countries has a comparative advantage in the production of any good. D) The gains to trade are equal for all trading partners.
A foreign exchange intervention that does not alter the domestic monetary base is:
A. impossible. B. sterilized. C. likely to change domestic interest rates. D. unsterilized.
A decrease in demand would be represented by
A) the price of a good going up. B) a downward movement along the demand curve. C) an upward movement along the demand curve. D) a shift of the demand curve to the left.
The largest government-run health care system in the world, with 1.4 million employees, is in
A) Canada. B) Japan. C) the United Kingdom. D) the United States.