The Income Effect on Labour Supply Refers to

question 99

Multiple Choice

The income effect on labour supply refers to

• A)the fact that at higher wages the worker earns more income.
• B)the fact that as the wage rate increases and income increases,labourers demand more of all normal goods,including leisure activities.
• C)the increase in the income of firms that is necessary to pay higher wages.
• D)the fact that as workers become more productive,they earn more income.
• E)the fact that as the wage rate increases and income increases,labourers demand more of all normal goods,including labour.

---

Definitions:

Secondary Market

A market where investors buy and sell securities or assets from other investors, rather than from the issuing company directly.

Previously Issued

Refers to securities or stocks that have been issued in the past and are currently being traded in secondary markets.

Mortgage Pass-Through Securities

Investment products that pool mortgage loans and pass the principal and interest payments from borrowers to investors periodically.

Mortgage Portfolio

A collection of mortgage loans held by a financial institution or investor.