A Decrease in the Real Wage Will Cause an Individual

question 27

Multiple Choice

A decrease in the real wage will cause an individual to increase his or her supply of labour if

• A)the substitution effect is greater than the income effect.
• B)the income effect is greater than the substitution effect.
• C)the substitution effect is positive and the income effect is negative.
• D)the substitution effect is equal to the income effect.

---

Definitions:

Counselling Psychologist

A professional who specializes in offering therapies and interventions to help clients manage personal and interpersonal challenges, focusing on emotional, social, vocational, educational, health-related, developmental, and organizational concerns.

School Psychologist

A professional who supports the mental, behavioral, and educational development of students within the school environment.

Clinical Psychologist

A mental health professional specializing in diagnosing and treating mental, emotional, and behavioral disorders through therapy.

Psychiatrist

A medical doctor specializing in the diagnosis, prevention, study, and treatment of mental disorders.