If the wage rate decreases,the substitution effect gives a household the incentive to
A) raise its reservation wage.
B) increase leisure and decrease work.
C) increase work and decrease work.
D) increase both work and leisure.
E) decrease both work and leisure.
Correct Answer:
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Q43: Use the table below to answer the
Q44: The reservation wage rate is the wage
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Q46: The income effect of a higher wage
Q47: If the wage rate increases,the substitution effect
Q49: The demand for the services of labour
Q50: If the wage rate decreases,the income effect
Q51: Use the information below to answer the
Q52: If the wage rate increases,the income effect
Q53: If the desire for leisure increased,the wage
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