Because of the Income Effect, the Labour Supply Curve Is

question 63

Multiple Choice

Because of the income effect, the labour supply curve is

• A) horizontal.
• B) backward- bending.
• C) positively sloped.
• D) vertical.

---

Definitions:

Warranty Payments

Payments made to repair or replace products that fail to meet specified standards of quality within a certain period after sale, covered under a warranty agreement.

Interest-Bearing Note

A debt instrument in which the issuer pays the investor interest on the principal amount, typically at a fixed rate, until maturity.

360-Day Year

A simplified accounting approach that assumes a year has 360 days, used to make interest calculations easier.

Interest Revenue

Income earned from the lending of funds or investment in interest-bearing assets, like loans, bonds, or savings accounts.