Asked by Hunain Nadeem on Jul 01, 2024
The backward-bending labor supply curve includes each of these variables except
A) the income effect.
B) the substitution effect.
C) the savings effect.
Backward-Bending
Describes a labor supply curve reflecting a situation where higher wages lead to a decrease in labor supplied because individuals opt for leisure over work.
Labor Supply Curve
A graphical representation showing the relationship between the different levels of wages and the quantity of labor workers are willing to supply.
Income Effect
A person’s willingness to give up some income in exchange for more leisure time.
- Understand the concepts of the labor supply curve, including the backward-bending labor supply curve.
Learning Objectives
- Understand the concepts of the labor supply curve, including the backward-bending labor supply curve.