When an Individual's Income Goes Up, That Individual May Choose

question 152

True/False

When an individual's income goes up, that individual may choose to supply less labor, resulting in a backward-sloping labor supply curve.

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Definitions:

Total Premium

The total amount paid above the nominal or face value for a security or insurance policy.

Contract Rate

The periodic interest to be paid on the bonds that is identified in the bond indenture; expressed as a percentage of the face amount of the bond.

Market Rate

The current price in the marketplace at which an asset can be bought or sold.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate, representing its value at issuance.