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Ignoring the Tax Consequences of Its Provision,what Might We Conclude

Question 26

Multiple Choice

Ignoring the tax consequences of its provision,what might we conclude if people work more hours in response to the provision of a public good?


A) The good is complementary with leisure
B) The good is complementary with work
C) The substitution effect exceeds the income effect
D) The substitution effect and income effect cancel each other

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