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For a Typical Person Who Is Currently Earning a Low

Question 39

Multiple Choice

For a typical person who is currently earning a low wage rate,the _____


A) substitution effect of a wage increase is usually stronger than the income effect.
B) substitution effect of a wage increase is usually weaker than the income effect.
C) income effect of a wage increase usually is zero.
D) substitution effect of a wage increase usually is zero.
E) substitution and income effects of a wage increase tend to work in the same direction.

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