In Order for a Labour Supply Curve to Be Backward

question 69

Multiple Choice

In order for a labour supply curve to be backward bending at high wages,

• A)leisure must be an inferior good.
• B)the substitution effect of a wage increase must be greater than the income effect.
• C)workers must have an irrational response to wage increases.
• D)the income effect of a wage increase must be greater than the substitution effect.

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Definitions:

Demonstrating

The act of showing or revealing characteristics, benefits, or methods through practical example or experiment.

Cyber Loafing

The act of using the internet and digital devices for personal activities during work hours, often leading to decreased productivity.

Low Morale

A state of diminished enthusiasm, confidence, or discipline among members of a group, often impacting productivity and satisfaction.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and commitment.