For a Typical Person Who Is Currently Earning a Low

question 211

Multiple Choice

For a typical person who is currently earning a low wage rate, the

• A)substitution effect of a wage rate increase usually is stronger than the income effect
• B)substitution effect of a wage rate increase usually is weaker than the income effect
• C)income effect of a wage rate increase is usually zero
• D)substitution effect of a wage rate increase is usually zero
• E)substitution and income effects of a wage rate increase tend to work in the same direction

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Definitions:

Analagously

means in a way that is similar or comparable in certain respects, typically for the purpose of explanation or clarification.

Implicit Encoding

Implicit encoding is the process of storing information without conscious awareness, typically involving memories of skills and habits.

Consciously Created

Products, ideas, or situations that are made or brought about through deliberate and purposeful thought and action.

Interactive Imagery

A mental technique involving the active creation and manipulation of visual images in the mind to aid in learning or problem-solving.