Multiple Choice
Figure: Leisure 2
Refer to the figure. According to this diagram, which statement is FALSE?
A) At 13 hours of leisure and an income of $45.19, the worker earns a wage of $4.17 an hour.
B) The labor supply curve is downward sloping.
C) The substitution effect dominates the income effect.
D) This worker chooses to work more hours if paid higher wages.
Correct Answer:
Verified
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