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In the Framework of the Household Production Model, If There

Question 7

Multiple Choice

In the framework of the household production model, if there is an increase in the wage rate, the primary impact that we would expect is:


A) a substitution effect away from the production of the time-intensive commodity.
B) a rise in fertility.
C) a substitution effect away from the production of the goods-intensive commodity.
D) an increase in early retirement.
E) an intertemporal substitution effect.

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