A Backward-Bending Labor Supply Curve Could Possibly Imply Which of the Following

question 19

Multiple Choice

A backward-bending labor supply curve could possibly imply which of the following cases?

• A)Leisure is an inferior good.
• B)Leisure is a normal good.
• C)Leisure is a normal good at low wages and inferior at high wages.
• D)None of the above.

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Definitions:

Second Bank

Refers to the Second Bank of the United States, a federal institution that served as the country's central bank until its charter expired in 1836.

Profit-Making

The primary goal of most businesses and enterprises, which involves generating revenue in excess of its expenses to gain financial profit.

William Henry Harrison

The ninth President of the United States, whose term in 1841 was famously brief, lasting just one month before he died of pneumonia.

American System

An economic plan that emphasized high tariffs, a national bank, and federal subsidies for roads, canals, and other infrastructure projects to foster national growth and unity in the early 19th century.