Statistical studies in the United States have reached the conclusion that for low-income workers
a. the substitution effect is greater than the income effect.
b. the income effect is greater than the substitution effect.
c. the income effect is about equal to the substitution effect.
d. the substitution effect is of the "wrong" sign.
a
Economics
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Refer to Table 11.1. What is the value of the government spending multiplier?
A) 1.67 B) 2.5 C) 3.33 D) 4
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The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate is $24 per worker, what quantity of labor will maximize profits?
A) 1 worker B) 2 workers C) 4 workers D) 5 workers
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