The backward bending supply curve of labour indicates?
The backward bending supply curve of labour indicates?
An abnormal supply situation
The law of supply
That labour supply and wage are directly related
That the elasticity of supply is uniform
Correct answer is C
The reason is that there are two effects related to determining supply. The substitution effect states that a higher wage makes work more attractive than leisure. The income effect states that a higher wage means workers can achieve a target income by working fewer hours.
Backward bending supply curve is the normal case for most workers. Most economists agree that a worker's supply curve for labour slopes upward at lower wages and bends backward at higher wages.
Life insurance companies contribute to economic development by holding a part of their assets in ...
Supply in Economics means making ...
ECOWAS will enable the countries involved to achieve ...
The following are bye-products of crude oil EXCEPT ...
The decision to consume more of one product will under normal circumstances imply that ...
A normal supply curve is usually positively sloped because the relationship between ...
Opportunity cost is an economic concept which describes the ...
Which of the following is not an effect of the discovery of mineral resources in an area? ...
Census figure of most countries in West Africa is inaccurate because of ...