In the Backward-Bending Portion of a Labor Supply Curve

question 52

Multiple Choice

In the backward-bending portion of a labor supply curve:

• A) a worker will increase the quantity of labor supplied in response to an increase in the wage.
• B) the substitution effect of a wage change outweighs the income effect.
• C) the income effect of a wage change outweighs the substitution effect.
• D) the substitution effect of a wage change equals the income effect.

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Definitions:

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Hormones

Hormones are chemical messengers produced by the endocrine system that regulate various physiological processes and behaviors in the body.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the blood to regulate body functions.

Synaptic Vesicles

Small sac-like structures in neurons that store neurotransmitters, which are chemicals responsible for transmitting messages across synapses.