The Substitution Effect Means That

question 265

Multiple Choice

The substitution effect means that

• A) leisure and work are perfect substitutes.
• B) leisure and work are perfect complements.
• C) if wages increase, hours of work increase.
• D) if wages increase, hours of work decrease.

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Definitions:

Establishing Evidence

The process of gathering and presenting data or facts to support or prove a point, hypothesis, or legal case.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.

Assessing Methods

Various techniques or procedures used to evaluate or measure the knowledge, skills, abilities, or characteristics of individuals or groups.

Validity Coefficient

Numeric value representative of the relative strength of an assessment’s validity.