If the Substitution Effect from a Higher Wage Rate Exceeds

question 4

Multiple Choice

If the substitution effect from a higher wage rate exceeds the income effect, then a higher wage rate

• A) increases the quantity of labor supplied.
• B) decreases the quantity of labor supplied.
• C) shifts the supply of labor curve leftward.
• D) shifts the supply of labor curve rightward.

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Definitions:

RDA

The Recommended Dietary Allowance, which is the average daily dietary intake level sufficient to meet the nutrient requirements of nearly all (97%-98%) healthy individuals.

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A numerical measurement of a person's body weight in relation to their height.

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A condition characterized by excessive body fat that presents a risk to health.