If the Income Effect Outweighs the Price Effect of a Wage

question 151

Multiple Choice

If the income effect outweighs the price effect of a wage increase, the quantity of labor supplied will:

• A)increase.
• B)decrease.
• C)remain constant.
• D)drop to zero.

---

Definitions:

Whigs

A political party active in the 19th century United States that advocated for federal government support of internal improvements and a national bank.

Federal Government

The national government of the United States, created by the Constitution, that encompasses the executive, legislative, and judicial branches.

Welfare Of The People

The general health, happiness, and safety of the population, often considered a primary goal of government policies and social programs.

Liberty

The condition in society where one faces no oppressive limitations from authorities on their lifestyle, conduct, or political stances.