In Order for a Labor Supply Curve to Be Backward

question 214

Multiple Choice

In order for a labor supply curve to be backward bending at high wages,

• A)leisure must be an inferior good.
• B)the substitution effect of a wage increase must be greater than the income effect.
• C)workers must have an irrational response to wage increases.
• D)the income effect of a wage increase must be greater than the substitution effect.

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Definitions:

Opportunistic Organizing

A strategy by labor unions to capitalize on sudden opportunities to gain new members or push for labor rights enhancements.

Certification Election

A process involving a vote by employees to determine whether they wish to be represented by a particular labor union.

Representative

An individual chosen or elected to act and speak on behalf of a larger group, often in negotiating or legislative contexts.

Negotiations

The process of discussing terms and conditions between two or more parties with the aim to reach an agreement or compromise.