If Rita's labor-supply curve is downward-sloping, then for Rita
a. an increase in the wage creates an income effect that is greater than the substitution effect.
b. an increase in the wage creates a substitution effect that is greater than the income effect.
c. leisure and consumption are perfect substitutes
d. leisure and consumption are perfect complements.
a
Economics
You might also like to view...
Payroll taxes are actually regressive taxes
a. True b. False Indicate whether the statement is true or false
Economics
Increased output and prices in the United States in the early 1940s were mostly the result of increased government expenditures
a. True b. False Indicate whether the statement is true or false
Economics