The Substitution Effect Shows a _____ Relationship Between Wages and Hours

question 136

Multiple Choice

The substitution effect shows a _____ relationship between wages and hours worked, whereas the income effect shows a _____ relationship.

• A) negative; positive
• B) negative; negative
• C) positive; negative
• D) positive; positive

---

Definitions:

Common Stock

Common Stock represents ownership shares in a corporation, providing voting rights and entitling the shareholder to a share of the company's profits through dividends.

Stock Options

Financial instruments granting the holder the right to buy or sell stock at a specified price before a certain date.

Net Income

Net income is the total profit of a company after subtracting all expenses, taxes, and costs from its total revenue.