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:

Butan-1-ol

A primary alcohol with the formula C4H9OH, where the hydroxyl group is attached to the first carbon of a four-carbon chain.

Ethers

Ethers are a class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups.

Solvents

Liquids capable of dissolving or dispersing one or more other substances.

Organic Reactions

Chemical reactions involving organic compounds.