The Effort Curve Is

question 4

Multiple Choice

The effort curve is

• A)horizontal, because work effort is independent of the real wage.
• B)negatively sloped, because of diminishing marginal returns to labor.
• C)positively sloped, because of the law of increasing cost.
• D)S-shaped, because a small increase in the real wage will increase work effort more at an intermediate wage than at a low wage or at a high wage.

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