If an Individual's Supply of Labor Curve Is Positively Sloped

question 6

Multiple Choice

If an individual's supply of labor curve is positively sloped throughout,then

• A)the substitution effect always dominates the income effect.
• B)the income effect always dominates the substitution effect.
• C)the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels.
• D)the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.

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Definitions:

Observed Behavior

The actions or responses of an individual that can be seen and measured by others or oneself.

Vicarious Reinforcement

Learning that occurs by observing the consequences (rewards or punishments) of another person’s behavior.

Physiological Drives

Basic bodily needs that drive behavior, such as hunger, thirst, sleep, and sex.

Bandura

Albert Bandura, a renowned psychologist known for his work on social learning theory, which emphasizes the role of observational learning, imitation, and modeling in behavior.