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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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real gross domestic product (GDP).

Trade Barriers

Measures implemented by governments to regulate international trade, such as tariffs, quotas, and import bans, which can protect domestic industries.

Population Growth

The increase in the number of individuals in a population, usually measured as the percentage change at a specific time.