Which of the Following Statements Is Not Correct

question 347

Multiple Choice

Which of the following statements is not correct?

• A)If Fiona gets a higher wage and works more, the substitution effect is greater than the income effect for her.
• B)If Miguel experiences a wage decrease and works less, the income effect is greater than the substitution effect for him.
• C)If the substitution effect is greater than the income effect, the labor-supply curve is upward sloping.
• D)If the income effect is greater than the substitution effect, the labor-supply curve is downward sloping.

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