If the Wage Rate Decreases,the Substitution Effect Gives a Household

question 68

Multiple Choice

If the wage rate decreases,the substitution effect gives a household the incentive to

• A)raise its reservation wage.
• B)increase leisure and decrease work.
• C)increase work and decrease work.
• D)increase both work and leisure.
• E)decrease both work and leisure.

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Definitions:

Mexican Government

The federal republic's governing body of Mexico, comprising the executive, legislative, and judicial branches.

Californios

The Hispanic residents of California before it became part of the United States, who were the original landowners and residents of the region when it was under Spanish and then Mexican rule.

Epidemic Disease

A disease outbreak that affects a large number of people within a community, population, or region over a short period.

Landholdings

Owned plots of land, varying in size and use, that can be agricultural, commercial, residential, or for conservation.