The Income Effect of a Higher Wage Is Defined as

question 33

Multiple Choice

The income effect of a higher wage is defined as

• A)the increased income workers must be paid to be willing to work more.
• B)the increased prices of consumer goods that result from increased worker incomes.
• C)the increased demand for leisure that results from increased worker incomes.
• D)the increased workers' purchasing power that results from increased worker incomes.
• E)the desire for workers to purchase more normal goods and fewer inferior goods as income rises.

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