During the postwar period, increased real wages for women led to an increase in the labor force participation rate for women. This implies that, for women,
a. the substitution effect of a wage increase is greater than the income effect.
b. the substitution effect of a wage increase is less than the income effect.
c. the substitution effect of a wage increase equals the income effect.
d. wage increases do not have an income effect.
b. the substitution effect of a wage increase is greater than the income effect.
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A production possibilities frontier shows
A) the various combinations of output a nation can produce a certain time, given its available resources and technology. B) the limits to future growth of a nation. C) how money can be allocated among two kinds of goods. D) that if price of one good decreases, the price of the other has to increase. E) that it is impossible to produce inefficiently.
The marginal product of labor is the increase in output as a result of hiring an additional worker while the marginal revenue product of labor is the increase in profit as a result of hiring an additional worker
Indicate whether the statement is true or false