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If an Individual's Labor Supply Curve Is Backward Bending, Then

Question 104

Multiple Choice

If an individual's labor supply curve is backward bending, then:


A) the income effect associated with a higher wage is greater than the substitution effect.
B) the substitution effect associated with a higher wage is greater than the income effect.
C) the substitution effect associated with a higher wage encourages more leisure.
D) A and C
E) B and C

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