Statement I: According to the Theory of the Backward-Bending Labor

question 91

Multiple Choice

Statement I: According to the theory of the backward-bending labor supply curve,the substitution effect and the income effect work in opposite directions.
Statement II: The theory of the backward-bending labor supply curve has no validity in real life because it assumes that money is the only factor that motivates us to work.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Affiliation

The need to form relationships and be part of a group, which is a fundamental human motivation.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.

Thermometer

An instrument for measuring and indicating temperature.

Thermostat

a device used to regulate the temperature of a system so that the system's temperature is maintained near a desired set-point.