If an individual's supply of labor curve is "backward bending," (that is, labor supply falls at high wage rates) then:
a. the substitution effect always dominates the income effect.
b. the income effect always dominates the substitution effect.
c. the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels.
d. the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.
c
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The greater the risk of nonrepayment of a loan, other things being equal
A) the longer is the repayment term. B) the lower is the charged loan fees. C) the higher is the rate of interest. D) the smaller is the amount of collateral that is used.
When a new firm enters a market, it:
A.) Pushes the equilibrium price upward. B.) Reduces the profits of existing firms. C.) Shifts the market supply curve to the left. D.) Shifts the market demand curve to the left.