If the Income Effect of a Wage Increase Equals the Substitution

question 216

True/False

If the income effect of a wage increase equals the substitution effect, the labor supply curve is horizontal at the equilibrium wage.

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Definitions:

Binet-Simon Scale

The first intelligence test, developed by Alfred Binet and Théodore Simon, to assess the intellectual development of children.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability for that individual's actual age.

Intellectually Impaired

A term describing individuals who have significant limitations both in intellectual functioning and in adaptive behavior.

Intelligence Quotient

A measure of a person's intellectual abilities relative to others, typically expressed as a numerical score.