Which of the Following Statements Is True,assuming Leisure Is a Normal

question 65

Multiple Choice

Which of the following statements is true,assuming leisure is a normal good?

• A) If the income effect is sufficiently large, the labour supply curve will bend backwards
• B) If the income effect is sufficiently small, the labour supply curve will bend backwards
• C) If the income effect is sufficiently large, the labour supply curve will slope down
• D) If the income effect is sufficiently large, the labour supply curve will shift to the left

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Definitions:

Conditional Probability

A measure of the likelihood of an event occurring given that another event has already occurred.

Benign Cyst

A non-cancerous sac-like structure filled with liquid or semisolid substance in the body.

Malignant Cyst

A growth that can potentially spread to other parts of the body and is characterized by cancerous cells.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the occurrence of the other(s).