The Backward Bending Portion of an Individual Labour Supply Curve

question 83

Multiple Choice

The backward bending portion of an individual labour supply curve is indicative of:

• A)a desire to increase work effort (hours) as wage rate rises
• B)dominant income effects at higher levels of income
• C)dominant income effects at lower levels of income
• D)a desire to reduce work effort (hours) as wage rate falls

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