A backward-bending labor supply curve implies that
A) the substitution effect dominates the income effect at higher wage rates but not at lower wage rates.
B) the substitution effect dominates the income effect at lower wage rates but not at higher wage rates.
C) leisure is an inferior good.
D) workers are irrational.
B
Economics
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Which of the following shifts the aggregate supply curve leftward?
A) increase in the money wage rate B) a fall in the price level C) increase in real GDP D) decrease in the money price of oil E) increase in potential GDP
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A decrease in the tax rate will ________ the disposable income of households and ________ the size of the multiplier effect
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase E) increase; not change
Economics