The Labor Supply Curve Is Backward Bending Because

question 308

Multiple Choice

The labor supply curve is backward bending because

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

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Definitions:

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Pertaining to both the legal aspects and the emotional responses or conditions.

Macrosystem

The most encompassing layer in Bronfenbrenner's Ecological Systems Theory, reflecting the overarching cultural or societal context that affects an individual's development.

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A concept in ecological systems theory referring to the larger societal conditions that affect a person's immediate environment but with which the individual does not interact directly.

Chronosystem

The influence of the time or era in which a child lives.