If Jeff's wage rate rises, he decides to work fewer 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 a nitwit.
C
You might also like to view...
A country that during its entire history has borrowed more from the rest of the world than it has lent to it is a ________, and a country that during its entire history has invested more in the rest of the world than other countries have invested in
it is a ________. A) debtor nation; investor nation B) borrower nation; creditor nation C) debtor nation; creditor nation D) net borrower nation; net lender nation
Monopolistic competition differs from perfect competition only with regard to the number of firms participating in the market
a. True b. False Indicate whether the statement is true or false