Average & Total Cost, Application of Economics & Income Inequality Mcqs


Q.  Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the ?

a. income effect is zero
b. substitution effect outweighs the income effect
c. income effect outweighs the substitution effect
d. income effect and the substitution effects are equal


ANSWER: See Answer
 
No explanation is available for this question!
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