One reason an individual labour supply curve may be backward-sloping is that:
(i) work hours decline as technology raises worker productivity
(ii) a raise may prompt a person to devote more time to leisure than to work
(iii) a wage fall may cause a person to not work as hard
A)(i)
B)(i) and (ii)
C)(i) and (iii)
D)(ii) and (iii)

Question

Quizplus · Accepted Answer

Option (i) suggests that as technology raises worker productivity, work hours decline. This can lead to a backward-sloping labour supply curve because individuals may choose to work fewer hours even though they are more productive.

Option (ii) suggests that a raise may prompt a person to devote more time to leisure than to work. This can also lead to a backward-sloping labour supply curve because the increase in wages may provide the individual with the financial means to work fewer hours and enjoy more leisure.

Option (iii) suggests that a wage fall may cause a person to not work as hard. While this may lead to a downward shift in the labour supply curve, it does not necessarily imply a backward slope.

Therefore, based on the given options, the most appropriate answer is (B) - (i) and (ii).

One Reason an Individual Labour Supply Curve May Be Backward-Sloping