The substitution effect shows that when the wage rate increases
a. an additional hour of labor is not worth pursuing.
b. an additional hour of leisure is now less costly in terms of foregone consumption.
c. an additional hour of leisure is now more expensive in terms of foregone consumption.
d. there will be intertemporal substitution.
c. an additional hour of leisure is now more expensive in terms of foregone consumption.
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Which of the following is a depository institution?
a. An insurance company b. A credit union c. A finance company d. A pension fund e. A stock market
A society is productive inefficient when
A) it produces at a point inside (below) its PPF. B) it does not produce the maximum output with its given resources and technology. C) it can produce more of one good without giving up some of another good. D) both a and b E) all of the above