For an individual's supply curve of labor to be backward bending:
a. the substitution effect must be greater than the income effect.
b. the substitution effect must be equal to the income effect.
c. the substitution effect must be less than the income effect.
d. is an impossibility.
c
Economics
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Indicate whether the statement is true or false
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If decision makers have limited ability to calculate profits from all possible combinations of options, they are said to have
A) dementia. B) bounded rationality. C) Pareto inefficiency. D) a maximin problem.
Economics