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Which of the Following Statements Are TRUE

question 103

Multiple Choice

Which of the following statements are TRUE?
I. The substitution effect of a wage decrease means that people will work more hours.
II. The income effect of a wage decrease means that people will take more leisure.
III. If wages fall and people work fewer hours, the substitution effect dominates the income effect.
IV. If wages increase and people work fewer hours, the income effect dominates the substitution effect.


Definitions:

Gallflies

Gallflies are a type of insect known for inducing growths, or galls, on plants, within which they then live and feed.

Parasitoid Wasps

Insects that lay their eggs on or in other insects, with the larvae eventually killing the host.

Stabilizing

A type of natural selection that favors the average individuals in a population, thereby maintaining the population's genetic variation.

Directional

In evolutionary biology, a type of natural selection that favors one extreme phenotype over others, causing a shift in the population's phenotypic distribution over time.

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