-Refer to the diagram above. Which of the following is a true statement?
A) backward-bending supply curves for labor are typical in the short run
B) workers react to higher wages by working more hours in the long run
C) long run reaction to higher wages is an increase in hours worked to gain more income
D) backward-bending supply curves for labor are not typical in the short run

Question

-Refer to the diagram above. Which of the following is a true statement?
A) backward-bending supply curves for labor are typical in the short run 
B) workers react to higher wages by working more hours in the long run 
C) long run reaction to higher wages is an increase in hours worked to gain more income 
D) backward-bending supply curves for labor are not typical in the short run

Quizplus · Accepted Answer

Backward-bending supply curves for labor illustrate that as wages increase beyond a certain point, workers may choose to work fewer hours, valuing leisure over additional income. This phenomenon is more associated with long-term labor supply decisions rather than short-term adjustments, making option D correct as it correctly states that such curves are not typical in the short run.

-Refer to the Diagram Above