If Jeff's wage rate rises, he decides to work more hours. From this, we can infer that
A) for Jeff, the substitution effect is greater than the income effect.
B) for Jeff, the substitution effect is equal to the income effect.
C) for Jeff, the substitution effect is less than the income effect.
D) Jeff is confused.
A
You might also like to view...
In a free-market system, producers will react to an increase in demand when
a. the price goes up. b. the government announces the increased demand. c. their costs increase. d. the free press publishes news of the increased demand.
The Trade Adjustment Assistance program is intended to help
A. businesses that seek to expand exports into protected foreign markets. B. local governments that are harmed when businesses fail as imports increase. C. protected industries obtain improved technology in order to increase productivity. D. workers and businesses that lose markets because of increases in imports.