Suppose an Individual Worker Is on the Backward-Bending Portion of Her

question 53

Multiple Choice

Suppose an individual worker is on the backward-bending portion of her labor supply curve.Then,for a wage increase,the:

• A)income and substitution effects both increase desired work hours
• B)income and substitution effects are equal
• C)income effect is stronger than the substitution effect
• D)substitution effect is stronger than the income effect

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Definitions:

Ego

Part of Sigmund Freud's model of the psyche, the ego represents the realistic part that mediates between the desires of the id, the demands of the environment, and the moral standards of the superego.

Superego

A component of Sigmund Freud's psychoanalytic theory representing the ethical or moral self, which contains societal standards, ideals, and prohibitions.

Defence Mechanism

Psychological strategies employed by the unconscious mind to protect itself from anxiety by distorting reality.

Sublimation

A defense mechanism proposed by Freud in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.