A Backward-Bending Supply Curve of Labor Shows That at Relatively

question 105

Multiple Choice

A backward-bending supply curve of labor shows that at relatively high wages the _____ effect dominates the _____ effect,and the supply curve has a _____ slope.

• A)income;substitution;positive
• B)income;substitution;negative
• C)substitution;income;positive
• D)substitution;income;negative

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Definitions:

Coupon

In finance, a coupon refers to the interest payment received by a bondholder from the bond's issuer at specified intervals.

Market Rate of Return

The average rate of return of investments in the market over a specific period.

Coupon Bonds

Bonds that pay the holder a fixed interest payment (coupon) periodically until the maturity date, at which point the principal is repaid.

Rate of Return

The increase or decrease in an investment's value within a specific time frame, represented as a percent of the investment's original price.