In the backward-bending portion of a labor supply curve:
a. a worker will increase the quantity of labor supplied in response to an increase in the wage.
b. the substitution effect of a wage change outweighs the income effect.
c. the income effect of a wage change outweighs the substitution effect.
d. the substitution effect of a wage change equals the income effect.
Question 2
In case of a disagreement between a regional manager and a business area manager of a matrix organization who have equal decision making authority, the decision should be made at higher levels of the organization.
Indicate whether the statement is true or false
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