If the income effect is larger than the substitution effect, then a wage hike will be accompanied by an increase in the quantity of labor supplied

Indicate whether the statement is true or false

FALSE

Economics

You might also like to view...

If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would:

a. rise. b. fall. c. remain unchanged. d. react unpredictably.

Economics

Answer the following statement true (T) or false (F)

1) Allocative efficiency occurs where (for the last unit) maximum willingness to pay exceeds minimum acceptable price by the greatest amount. 2) Allocative efficiency occurs where the collective sum of consumer and producer surplus is at a maximum. 3) That government that has the smallest budget is the most efficient in the economic sense. 4) A demand curve for a public good is determined by summing horizontally the individual demand curves for the public good. 5) The optimal quantity of a public good occurs where the marginal benefit of the citizen who has the highest preference for the good just equals the good's marginal cost.

Economics