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The Income Effect of a Higher Wage Is Defined as

Question 57

Multiple Choice

The income effect of a higher wage is defined as


A) the increased income workers must be paid to be willing to work more.
B) the increased prices of consumer goods that result from increased worker incomes.
C) the increased demand for leisure that results from increased worker incomes.
D) the increased workers' purchasing power that results from increased worker incomes.
E) all of the above.

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