If a Person Supplies Fewer Hours of Labor in Response

question 40

Multiple Choice

If a person supplies fewer hours of labor in response to a wage increase,then

• A) the substitution effect is greater than the income effect.
• B) the income effect is greater than the substitution effect.
• C) the income effect equals the substitution effect.
• D) the person is not maximizing utility.

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Definitions:

Communicating

The act of conveying information or expressing thoughts and feelings through speech, writing, signals, or behavior.

Bystanders

Individuals who are present at an event or incident but do not take an active role in its outcome.

Audiences

Groups of listeners, viewers, or spectators that observe, follow, or listen to a particular event, performance, or communication.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.