Multiple Choice
The substitution effect of a real wage increase is observed when
A) the higher wage causes workers to take more leisure and work more hours.
B) the higher wage causes workers to take more leisure and work fewer hours.
C) leisure's higher opportunity cost causes workers to take less leisure and work more hours.
D) leisure's higher opportunity cost causes workers to take more leisure and work fewer hours.
Correct Answer:
Verified
Related Questions
