In Order for a Labor Supply Curve to Be Backward

question 214

Multiple Choice

In order for a labor 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:

Bank Reconciliation

The process of matching up the balances in a company's accounting records for a cash account to the corresponding information on a bank statement.

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A common symbol in software and applications that provides access to settings or tools.

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A graphical interface element typically used in software applications to indicate the functionality for adding new items, such as records, files, or directory entries.

Bank Deposit

The act of placing money into a banking institution for safekeeping, which can also refer to the money that has been deposited.