A Backward-Bending Labor Supply Curve Occurs When

question 74

Multiple Choice

A backward-bending labor supply curve occurs when:

• A) the substitution effect of a wage increase is greater than the income effect.
• B) the income effect of a wage increase is greater than the substitution effect.
• C) the substitution effect of a wage increase equals the income effect.
• D) a negatively sloped labor supply curve is not possible.

---

Definitions:

Islamic Fundamentalism

A movement within Islam that seeks to return to the fundamentals of the religion and live strictly according to the Quran and Hadith.

Evangelical Christianity

A branch of Protestant Christianity focused on the authority of the Bible, the need for personal conversion experiences, and the importance of sharing the Christian faith.

Mass Entertainment

Forms of amusement and entertainment that are produced and distributed to appeal to and engage large numbers of people.

Government Shutdown

A situation where the government ceases operations due to the failure to agree on a budget or funding legislation.