Assuming leisure is a normal good, if the income effect is greater than the substitution effect, a wage increase
A) will have no effect on labour supply.
B) will decrease labour supply.
C) could cause either an increase or a decrease in labour supply.
D) will increase labour supply.
Correct Answer:
Verified
Q5: If input markets were perfectly competitive, income
Q6: Which of these is not a determinant
Q7: The substitution effect of higher wages suggests
Q8: Economists call the sacrifice involved in working
Q9: As the wage rate per hour increases,
Q11: If the income effect is smaller than
Q12: The elasticity of supply of labour will
Q13: The elasticity of supply of labour is
Q14: An unemployed salesperson has been offered a
Q15: Geographical immobility of labour is caused by
A)
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