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The Upward-Sloping Character of the Labor Supply Schedule Assumes That

Question 7

Multiple Choice

The upward-sloping character of the labor supply schedule assumes that the ________.


A) the substitution effect is equal to the income effect
B) the substitution effect is larger than the income effect
C) the substitution effect is smaller than the income effect
D) the ratio of real wages to the marginal product of labor is equal to the equilibrium nominal wage

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