"For married women,the substitution effect of rising wage rates has apparently outweighed the income effect." Empirical evidence suggests this statement is:
A)true because the labor force participation rate of women has been increasing
B)true because married women have had to work to maintain household living standards
C)not true because the labor force participation rate of women has been increasing
D)not true because the labor force participation rate of women has been declining

Question

Quizplus · Accepted Answer

The statement suggests that as wage rates for women increase, they may be more likely to work regardless of their income needs (substitution effect) rather than solely due to their need for additional income (income effect). The fact that labor force participation rates for women have been increasing provides evidence for the substitution effect outweighing the income effect, as women are choosing to work even if their household income is already sufficient.

"For Married Women,the Substitution Effect of Rising Wage Rates Has