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.
Personal savings are generally low in West Africa because of ...
When the total product starts falling, then the marginal product is ...
Which of the following statement are TRUE of agriculture in Nigeria? (i) it provides food for the...
Surplus in balance of payments leads to _______ ...
Factors affecting size of Labour Force include the following EXCEPT? ...
Which of the following is an example of a fixed cost? ...
Price discrimination can only occur when there is ...
A firm achieves least cost in production by substituting factors until ...