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Which of the Following Factors Is the Most Important in Determining

Question 4

Multiple Choice

Which of the following factors is the most important in determining whether the substitution effect emanating from a wage change is significant?


A) Whether or not leisure is a normal good.
B) Whether the wage change is anticipated or unanticipated.
C) Whether income effect is present.
D) Whether the wage change is temporary or permanent.
E) Whether lifetime earnings are high or low.

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