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.

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Definitions:

Alveoli

Little vesicles in the lungs responsible for the transfer of oxygen and carbon dioxide.

Cartilage

A firm, flexible connective tissue found in various forms in the human body such as joints, rib cage, and ear structure.

Distal End

Referring to the end of a limb or structure that is farthest from the point of attachment or the trunk of the body.

Trachea

The part of the respiratory tract between the larynx and the bronchial tree that is tubular and made of rings of cartilage and smooth muscle; also called the windpipe.