Which of the Following Statements Regarding Labor Supply Is False

question 79

Multiple Choice

Which of the following statements regarding labor supply is false?

• A)Jerry's labor supply curve can bend backward if the income effect of a higher wage rate outweighs the
• Substitution effect.
• B)Bob's labor supply curve will not bend backward if the wage rate is never so high that the income effect
• Outweighs the substitution effect.
• C)If there is a wage rate above which the income effect is at least as great as the substitution effect, the
• Labor supply curve will be vertical or bend backward.
• D)The labor supply curve will slope upward if the income effect dominates the substitution effect.
• E)Hayden's offer to work more hours as the result of a wage increase suggests that the substitution effect
• Dominates the income effect.

---

Definitions:

Culture

The shared beliefs, practices, norms, languages, and values of a group of people, influencing their behavior and perceptions.

Race

A social construct used to categorize humans based on physical characteristics, ancestry, historical affiliation, or shared culture.

Ethnicity

A category of people who identify with each other based on shared ancestral, social, cultural, or national experiences.

Ecological-Systems Approach

A theory that emphasizes the multiple environments, or systems, that influence human development.