Question 1 (Multiple Choice) The labour supply curve: A. B. C. D. Is always upward sloping Is always downward sloping Slopes upwards when the substitution effect dominates Slopes upwards when the income effect dominates Question 2 (Multiple Choice) Which of the following could explain a decrease in the demand for labour in a particularjob? A B. C. D. additional training that increases the productivity of each unit of labour in this market. an increase in the amount of risk associated with this job a decrease in the amount of risk associated with this job a decrease in the productivity of each unit of labour in this market Question 3 (Multiple Choice) If we see a rational worker increasing their labour supply in reaction to a rise in wages: A. B. C. We can conclude that for this worker leisure is a normal good. We can conclude that for this worker leisure is an inferior good. We cannot conclude whether for this worker leisure is an inferior good or a normal good. . We can conclude that for this worker the income effect was smaller than the substitution effect. We cannot conclude that for this worker the income effect was smaller than the substitution effect