Which One of the Following Statements Is Always True of the Substitution

question 86

Multiple Choice

Which one of the following statements is always true of the substitution effect?

• A)It leads to a positive income effect.
• B)It is positive.
• C)It decreases consumption.
• D)It leads to a negative income effect.
• E)It is negative.

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Definitions:

Interactional Fairness

The perceived fairness of the interpersonal treatment people receive when organizational procedures are implemented.

Distributive Fairness

Distributive fairness, also known as distributive justice, is the perceived fairness of the outcomes received, including the distribution of rewards or resources among members of a group or organization.

Shocks

Unexpected or sudden events that disrupt the current state of affairs, often leading to significant changes.

Turnover

The rate at which employees leave a workforce and are replaced by new employees, which can impact an organization's performance and continuity.