Because Individuals Initially Own More Time Than They Consume and Sell

question 18

Multiple Choice

Because individuals initially own more time than they consume and sell the difference to their employers:

• A) the direction of the income effect is the opposite than it is for other goods.
• B) the direction of the income effect is the same as it is for other goods.
• C) there is no income effect resulting from a change in the individual's wage rate.
• D) the income effect of a wage change is relatively small.

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Definitions:

Rectus Abdominis

A major muscle in the front of the abdomen that assists in breathing, movement, and posture.

Sternomastoid

Refers to the sternocleidomastoid muscle, which runs from the sternum and clavicle to the mastoid process of the skull, turning the head.

Sternohyoid

A muscle in the neck that depresses the hyoid bone and larynx during swallowing and speaking.

Teres Major

A muscle of the upper arm that assists in rotating and adducting the arm, located near the shoulder.