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If the Labor Supply Curve Bends Backward, Then the Backward-Bending

Question 357

Multiple Choice

If the labor supply curve bends backward, then the backward-bending portion reveals that _____ is a(n) _____ good and the _____ effect is greater than the _____ effect.


A) labor; normal; income; substitution
B) labor; inferior; substitution; income
C) leisure; normal; income; substitution
D) leisure; inferior; substitution; income

Correct Answer:

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