The Labor Supply Curve May Have a Backward-Bending Portion If

question 169

Multiple Choice

The labor supply curve may have a backward-bending portion if, at higher wages, the income effect is

• A)smaller than the substitution effect.
• B)larger than the substitution effect.
• C)negative.
• D)Any of the above could result in a backward-bending supply curve.

---

Definitions:

Personal Relationships

Connections or bonds between individuals based on factors such as love, friendship, kinship, or professional interactions.

Humanistic Approach

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Abraham Maslow

Abraham Maslow was an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Turning Point

A critical moment or event that leads to a significant change in the direction or outcome of a situation or life path.