The substitution effect of wages states that a decreased wage rate
A. Will shift the labor supply curve rightward.
B. Will lead to a movement up along the existing supply curve.
C. Encourages people to consume less leisure.
D. Encourages people to work less hours.
Answer: D
Economics
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An increase in price will cause a firm's total revenue to increase if demand is price elastic
a. True b. False Indicate whether the statement is true or false
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When the government wants to spend money
a. current consumption will fall only if the government borrows. b. current consumption will fall only if the government raises taxes. c. current consumption will fall if the government borrows or raises taxes. d. current consumption will not be affected.
Economics