The Fact That We Observe Positively Sloped Market Labor Supply

question 33

Multiple Choice

The fact that we observe positively sloped market labor supply curves implies that

• A)The substitution effect is stronger that the income effect for most workers
• B)The income effect is stronger than the substitution effect for most workers
• C)Most workers don't have income or substitution effects
• D)The income effect plus substitution effect results in the positive slope
• E)Labor laws require workers to work at least 40 hours per week

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Definitions:

Conforming Goods

Goods that conform to contract specifications.

Right of Refusal

A contractual right that gives an individual or entity the opportunity to enter a business transaction with another party before anyone else can.

Perfect Tender Rule

The requirement that a seller deliver goods in conformity with the contract, down to the last detail.

Rigidity

The quality of being unable to bend or be forced out of shape; lack of flexibility or adaptability.