Your Boss Has Told You That Because of a Decrease

question 44

Multiple Choice

Your boss has told you that because of a decrease in the demand for the designer baby food your firm produces,he will have to cut everyone's salary next year to avoid layoffs.In response to this news you would

• A)increase your labour supply because the income effect would be equal to the substitution effect.
• B)decrease your labour supply because the substitution effect would be stronger than the income effect.
• C)increase your labour supply because there would be an income effect,but no substitution effect.
• D)decrease your labour supply because there would be a substitution effect,but no income effect.

---

Definitions:

Methamphetamine

A powerful, highly addictive stimulant that affects the central nervous system, commonly known as meth, blue, ice, and crystal, among other names.

CNS Stimulant

A class of drugs that increases the activity of the central nervous system, enhancing mental alertness, attention, and energy.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which processes information and controls responses.

Midline

An imaginary line or anatomical axis that divides an organism's body into symmetrical or equal left and right halves.