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:

Management Problems

Issues or challenges faced by managers in directing organizational operations, often involving team performance, resource allocation, or strategic planning.

Knowledge Workers

Employees who primarily work with information or generate knowledge, often requiring a high level of education and expertise.

Add Value

The process of enhancing a product or service to make it more appealing to customers.

Blue-Collar

Refers to working-class individuals who perform manual labor, often in industries that involve physical work, such as construction or manufacturing.