When the Wage Increases,the Substitution Effect in the Household's Choices

question 19

Multiple Choice

When the wage increases,the substitution effect in the household's choices leads to

• A) a decrease in consumption and leisure.
• B) a decrease in consumption and an increase in leisure.
• C) an increase in consumption and a decrease in leisure.
• D) an increase in consumption and leisure.

Compare and contrast bonds and stocks, including their risk and return attributes.

Calculate and interpret financial ratios, including the price-earning ratio.

Describe the impact of fiscal policies on national saving and investment.

Understand the difference between equity and debt finance.

---

Definitions:

Iron Formation

A sedimentary rock consisting of alternating layers of iron-rich minerals and silica or carbonate, typically formed in Precambrian seas.

Seawater

The saltwater that makes up the oceans and seas, covering more than 70% of the Earth's surface, containing various salts and life forms.

Silica-rich Organisms

Organisms that produce silica (silicon dioxide) as part of their structure, such as diatoms and certain sponges.

Cross Bed Formation

The structures within sedimentary rocks that result from angled deposition due to wind or water currents, indicating the direction of flow.