The Representative Consumer's Current Labour Supply Curve Slopes Upward Under

question 43

Multiple Choice

The representative consumer's current labour supply curve slopes upward under the assumption that

• A) there is an indirect relationship between the current real wage and current labour supply.
• B) the substitution effect of an increase in the real wage outweighs the income effect.
• C) the substitution effect of an increase in the real wage is less than the income effect.
• D) the substitution effect of an increase in the current labour supply outweighs the income effect.
• E) the substitution effect of an increase in the current labour supply is less than the income effect.