The Figure Given Below Shows a Backward-Bending Labor Supply Curve

question 97

Multiple Choice

The figure given below shows a backward-bending labor supply curve for an individual. In the figure below, which of the following is true when the wage rate increases from $11 to $13? ​
Figure 12.3
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• A)The substitution effect will cause the person to work more hours.
• B)The income effect will cause the person to work less hours.
• C)The substitution effect will cause the person to work fewer hours.
• D)The income effect will cause the person to work the same number of hours.
• E)The substitution effect will cause the person to work the same number of hours.

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Definitions:

Culture

The social behavior and norms found in human societies, including language, customs, laws, art, and technology.

Checking Rituals

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, often seen in obsessive-compulsive disorder (OCD).

Clinical Practitioner

A healthcare professional who assesses and treats patients in a clinical setting, which includes doctors, nurses, and therapists among others.

Psychological Causes

Factors originating in the mind that can lead to emotional distress, behavioral problems, or mental health disorders.