All Else Equal,rising Real Wages Will

question 27

Multiple Choice

All else equal,rising real wages will:

• A)decrease average weekly work hours if the income effect exceeds the substitution effect
• B)increase average weekly work hours if the income effect exceeds the substitution effect
• C)decrease average weekly work hours if the substitution effect exceeds the income effect
• D)have no impact on average weekly work hours

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Definitions:

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, typically in the form of cash.

Market Price

The existing rate at which an asset or service is traded in the open market.

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, indicating the effectiveness of asset use.