6. Which of the following statements is TRUE? (1 pt.; CHOOSE ONE) A. The market
ID: 1202724 • Letter: 6
Question
6. Which of the following statements is TRUE?
(1 pt.; CHOOSE ONE)
A. The market supply of labor is always upward sloping, but an individual’s labor
supply curve may not be upward sloping throughout its entire range.
B. An individual’s supply of labor is always upward sloping, but the market
supply of labor may not be upward sloping throughout its entire range.
C. Both the market supply of labor and the individual’s supply will both be
upward sloping.
D. Both the market supply of labor and the individual’s supply may not be upward
sloping throughout their entire range.
Explanation / Answer
A-The market supply of labor is always upward sloping, but an individual’s labor supply curve may not be upward sloping throughout its entire range is correct.
An individual's supply of labor can either be positive or negatively sloped or perfectly inelastic The individual labor supply curve is sometimes ,backward bend because of dominance of the income effect over the substitution effect at high wage level.
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