The Labour Supply Curve Is Backward- Bending Because

question 67

Multiple Choice

The labour supply curve is backward- bending because

• A) as the wage rate rises, the income effect becomes larger than the substitution effect.
• B) an increase in the wage rate shifts the supply of labour curve leftward at higher wages.
• C) an increase in the wage rate shifts the supply of labour curve rightward at higher wages.
• D) as the wage rate rises, the substitution effect becomes larger than the income effect.

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Definitions:

Organizational Psychologists

Professionals who apply psychological theories and principles to improve the work environment, employee satisfaction, productivity, and organizational effectiveness.

Employee Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs.

Work-Related Accidents

Incidents that occur in the course of work leading to physical or mental occupational injuries.

Employee Training

A structured program designed to boost employees' knowledge, skills, and abilities related to their job functions, aiming to increase productivity and job satisfaction.