Over the Backward Bending Portion of the Labour Supply Curve

question 28

Multiple Choice

Over the backward bending portion of the labour supply curve,

• A) There is no longer a trade-off between income and leisure.
• B) The substitution effect of a wage change dominates the income effect.
• C) The wage elasticity of labour demand is inelastic.
• D) The wage elasticity of labour supply is negative.
• E) Leisure becomes an inferior good.

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Net Earnings

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Standard Mileage Rate

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