If Joe receives an increase in his wage rate and decides to decrease his hours worked, the
A) substitution effect and the income effect must be equal.
B) substitution effect must exceed the income effect.
C) income effect must exceed the substitution effect.
D) substitution effect must be zero.
C
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The short-run supply curve for a perfectly competitive firm is that part of the firm's marginal cost curve that lies above the minimum point of its average variable cost curve
Indicate whether the statement is true or false
Among the following cases, the opportunity cost of crowding out is the smallest when the government spends dollars: a. staffing the Internal Revenue Service hotline
b. printing stationery for new members of Congress. c. placing photographs of the new President in government and diplomatic offices worldwide. d. on Social Security benefits. e. on new interstate highways.