Which of the Following Statements Is Not True of Labor

question 25

Multiple Choice

Which of the following statements is not true of labor supply?

• A)Jerry's labor supply curve can bend backward if the income effect of a higher wage rate outweighs the substitution effect.
• B)Bob's labor supply curve will not bend backward if the wage rate is never so high that the income effect outweighs the substitution effect.
• C)If there is a wage rate above which the income effect is at least as great as the substitution effect, the labor supply curve will be vertical or bend backward.
• D)The labor supply curve will slope upward if the income effect dominates the substitution effect.
• E)Hayden's offer to work more hours as a result of a wage increase suggests that the substitution effect dominates the income effect.

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Definitions:

Free Will

The ability to choose, think, and act voluntarily without being constrained by external circumstances or forces.

Determinism

The philosophical concept that all events, including moral choices, are completely determined by previously existing causes.

Fatalistic Stance

A belief system where events are predetermined by fate, leading to acceptance of all outcomes as inevitable, regardless of one's own actions or efforts.

Personal-Document Technique

A research method involving the analysis of personal documents (diaries, letters, etc.) to gain insight into an individual's life, thoughts, and feelings.