Figure 20-3 -Figure 20-3 Shows a Worker's Backward-Bending Supply Curve of Labor.Which

question 216

Multiple Choice

Figure 20-3
-Figure 20-3 shows a worker's backward-bending supply curve of labor.Which of the following statements is correct?

• A)The substitution effect of a change in the wage dominates the income effect at all points on the curve.
• B)The income effect of a change in the wage dominates the substitution effect at all points on the curve.
• C)Above W*, the substitution effect of a change in the wage dominates the income effect; below W*, the income effect dominates the substitution effect.
• D)Above W*, the income effect of a change in the wage dominates the substitution effect; below W*, the substitution effect dominates the income effect.

---

Definitions:

Operant Conditioning

A process of learning in which a behavior's force is altered through positive reinforcement or penalties.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Social Learning

A type of learning in which people are more likely to imitate behaviors if they have seen others rewarded for performing them, and less likely to imitate behaviors if they have seen others punished for performing them.

Bad Dog

A colloquial expression often used to describe a dog's undesirable behavior.