Ryan Experiences an Increase in Her Wages

question 56

Multiple Choice

Ryan experiences an increase in her wages. The hours of labor that she supplies to the market would increase if

• A)the income effect is larger than the substitution effect.
• B)the substitution effect is larger than the income effect.
• C)neither the income effect nor the substitution effect apply to Ryan's labor-leisure tradeoff.
• D)Ryan views both labor and leisure as inferior goods.

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Definitions:

Declaration of Independence

A foundational document proclaimed on July 4, 1776, declaring the thirteen American colonies' independence from British rule.

French and Indian War

A conflict between Great Britain and France (1754-1763) in North America, part of a larger imperial struggle, the Seven Years' War, involving native American allies on both sides.

French Blockade

The use of naval forces by France to prevent ships from entering or leaving port, particularly during the Napoleonic Wars, as a means to weaken enemy countries economically.

Washington's Ability

Refers to the skills, leadership qualities, and strategic insights of George Washington, especially as a military commander during the American Revolution and as the first President of the United States.