A Backward-Bending Supply Curve of Labour Shows That at Relatively

question 215

Multiple Choice

A backward-bending supply curve of labour shows that at relatively low wages,the _____ effect dominates the _____ effect,and the supply curve has a _____ slope.

• A) income;substitution;positive
• B) income;substitution;negative
• C) substitution;income;positive
• D) substitution;income;negative

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Definitions:

Economic State

A general term referring to the current condition of the economy, encompassing various indicators such as GDP, unemployment rate, inflation, and consumer confidence.

Unattainable Combination

A scenario in the context of production possibility frontiers where the desired production of goods exceeds the resources available, making it impossible to achieve.

Current Economic Situation

A description of the state of the economy at a specific point in time, including aspects like employment levels, inflation rates, and GDP growth.

Point A

Typically used in graphical analysis to denote a specific point or position within a chart or graph.