A backward-bending labor supply curve implies that
A) the substitution effect dominates the income effect at higher wage rates but not at lower wage rates.
B) the substitution effect dominates the income effect at lower wage rates but not at higher wage rates.
C) leisure is an inferior good.
D) workers are irrational.
B
You might also like to view...
Which of the following are components of the opportunity cost of being a full-time student? The cost of:
What will be an ideal response?
Computer forecasting models have
a. been able to forecast changes in the growth rate of real GDP with considerable accuracy. b. had only limited success predicting turns in key economic variables such as real GDP. c. been able to accurately forecast the future direction of inflation but not real GDP. d. been able to accurately forecast the future direction of real GDP but not inflation.
The labor force participation rate is defined as the number of
a. unemployed individuals plus employed individuals divided by the number of individuals in the working-age population. b. employed individuals divided by the number of individuals in the working-age population. c. unemployed individuals plus employed individuals divided by the number of employed individuals. d. employed individuals divided by the number of individuals employed plus the number of unemployed individuals.
The stock market crashed in the year __________.
Fill in the blank(s) with the appropriate word(s).