27. On the portion of a worker\'s labor supply curve that is backward-bending: (a) the substitution effect outweighs the income effect. ) the income effect outweighs the substitution effect. (c) the income and substitution effects are equal. (d) the income and substitution effects are both negative. 28. If a worker\'s desired hours of labor do not change after a wage decrease, then (a) the income effects dominates the substitution effect. (b) the substitution effect dominates the income effect. (c) the income and substitution effects are of equal magnitude. (d) the income and substitution effects are small in absolute value. forward-looking people 29. Present-oriented people discount future earnings (a) at the same rate as (b) at a higher rate than (c) at a lower rate than (d) at a higher or lower rate than 30. Nina would be more likely to obtain a college education if: (a) her discount rate was lower. (b) the supply of others with a college education was greater (c) she expected to retire at a younger age. (d) she was older
27) Answer: A
If the wages were increased than the substitution effect out weighs the income effect as at one point of time due to raise in income the labour force will get reduced leading to unemployment thus which have negative impact.
28) Answer:A
If the wages are decreased than the work force will be required more in number to complete work in less duration than expected. Thus leading to decrease in work hours due to more labour. SO here income dominates the substitution effect.
29) Answer: B
Present oriented people discount future earnings at a hugher rate than forward looking people. Forward looking people are innovative and have a planning for future earnings which make them consious.
30) Answer: A
In any college if there is increase in grants and loans at less intrest will always leads to more number of students joining the college.
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