If the Income Effect of a Wage Change Outweighs the Substitution

question 18

Multiple Choice

If the income effect of a wage change outweighs the substitution effect of a wage change, the labor-supply curve is

• A) upward sloping.
• B) horizontal.
• C) vertical.
• D) backward bending.

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Definitions:

Deltoid Muscle

A large, triangular muscle covering the shoulder joint and used for lifting and rotating the arm.

Anterior Cervical Triangle

An anatomical area of the neck outlined by the mandible, the sternocleidomastoid muscle, and the midline of the neck.

Posterior Cervical Triangle

An anatomical area of the neck bounded by the sternocleidomastoid muscle, the trapezius muscle, and the clavicle, containing several important structures including nerves and lymph nodes.

Sternocleidomastoid

A neck muscle that extends from the sternum and clavicle to the mastoid process of the temporal bone, involved in rotating and flexing the head.