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WAEC Economics 2018 Objective — Question 12

Question 12 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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The backward bending supply curve of labour indicates

  • A. an abnormal supply situationCorrect
  • B. the law of supply
  • C. that labour supply and wage rate are directly related
  • D. that the elasticity of supply is uniform

Explanation

The backward-bending supply curve shows that beyond a certain wage rate, workers may prefer more leisure over more income, causing labour supply to fall as wages rise further — an unusual (abnormal) relationship.

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