Figure 14.1.2 -Assume That as the Wage Rate Rises a Worker's Substitution

question 118

Multiple Choice

Figure 14.1.2
-Assume that as the wage rate rises a worker's substitution effect for leisure is larger than the income effect. We can conclude that in this region, the worker's:

• A) labor supply curve will be backward bending.
• B) labor supply curve will have the usual upward slope.
• C) labor supply curve will be completely inelastic.
• D) supply curve will be horizontal.

---

Definitions:

Opposite Direction

A term indicating movement, action, or orientation in a direction that is reverse to another specified direction.

Same Direction

Implies movements or actions that are aligned in a parallel trajectory or orientation towards a similar goal or outcome.

Color Constancy

The psychological feature that allows the human brain to perceive colors consistently under varying lighting conditions.

Light Waves

Electromagnetic waves that are visible to the human eye, responsible for the phenomenon of light.