The supply of labour:
A)is always backward bending.
B)is the result of a maximization process.
C)is independent of non- wage income.
D)is the inverse of the supply of capital.

Question

Quizplus · Accepted Answer

The supply of labour is the result of a maximization process, where individuals decide how much labour to supply based on the wage, non-wage income, and their preferences for leisure. It is not always backward bending, as the shape of the supply curve depends on various factors such as the substitutability between labour and other factors of production, technological progress, etc. It is not independent of non-wage income, as an increase in non-wage income may reduce the amount of labour supplied. It is not the inverse of the supply of capital, as the two are separate factors of production that are complementary.

The Supply of Labour