Which of the following statements is not correct?
A) If Jane gets a higher wage and works more, the substitution effect is greater than the income effect for her.
B) If Spencer experiences a wage decrease and works less, the income effect is greater than the substitution effect for him.
C) If the substitution effect is greater than the income effect, the labor-supply curve is upward sloping.
D) If the income effect is greater than the substitution effect, the labor-supply curve is downward sloping.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is not correct?
A) If Jane gets a higher wage and works more, the substitution effect is greater than the income effect for her.
B) If Spencer experiences a wage decrease and works less, the income effect is greater than the substitution effect for him.
C) If the substitution effect is greater than the income effect, the labor-supply curve is upward sloping.
D) If the income effect is greater than the substitution effect, the labor-supply curve is downward sloping.

Which of the Following Statements Is Not Correct