The Labor Supply Curve Starts to Bend Backward Once the

question 95

Multiple Choice

The labor supply curve starts to bend backward once the

• A)Income effect exceeds the substitution effect.
• B)Substitution effect exceeds the income effect.
• C)Marginal revenue product of labor equals the marginal utility of leisure.
• D)Total utility of leisure outweighs the total utility of labor.

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Definitions:

RAM Memory

Random Access Memory, a form of computer memory that can be accessed randomly at any time, used to store working data and machine code.

CPU

The Central Processing Unit, a primary component of a computer that performs most of the processing inside a computer.

SuperFetch

A technology in Windows that pre-loads frequently used applications into memory to reduce loading times.

Windows

An operating system developed by Microsoft, widely used on personal computers, featuring a graphical user interface.