Which of the Following Statements Is TRUE

question 9

Multiple Choice

Which of the following statements is TRUE?

• A) The income effect of a wage increase is to consume less leisure.
• B) The substitution effect of a wage decrease is to consume less leisure.
• C) The price of leisure decreases with a decrease in wages.
• D) The price of leisure increases with an increase in income.

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Definitions:

Consent

Consent refers to the voluntary agreement to or approval of what is done or proposed by another; it's essential in legal contexts to validate contracts, medical treatments, and certain interactions.

Discharge

The act of releasing an individual or entity from a legal obligation, such as a debt or duty.

Remortgage Without Consent

The act of obtaining a new mortgage on a property without the approval or agreement of the existing lender or relevant parties who have an interest in the property.

Municipal Taxes

Local government levies imposed on property owners to fund public services such as schools, roads, and emergency services.