If the Substitution Effect from a Higher Wage Rate Exceeds

question 4

Multiple Choice

If the substitution effect from a higher wage rate exceeds the income effect, then a higher wage rate

• A) increases the quantity of labor supplied.
• B) decreases the quantity of labor supplied.
• C) shifts the supply of labor curve leftward.
• D) shifts the supply of labor curve rightward.

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Definitions:

Cognitive Skills

Mental capabilities involved in learning, thinking, reasoning, problem-solving, and adapting to new situations.

Spatial Abilities

The capacity to understand, reason, and remember the spatial relations among objects or space.

Sexual Behaviors

Actions or practices related to the expression of sexuality, which can vary widely among individuals and cultures.

Number of Sex Partners

A statistical measure indicating the count of sexual partners an individual has had.