If the Substitution Effect of a Wage Increase Dominates the Income

question 56

True/False

If the substitution effect of a wage increase dominates the income effect, the labour supply curve has a positive slope.

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Definitions:

Unconditioned Response

An instinctive response to a stimulus that happens automatically, without the need for prior learning or conditioning.

Reflexes

are involuntary and nearly instantaneous movements in response to stimuli, which demonstrate the functioning of the nervous system.

Fixed-ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded only after a specified number of responses, promoting a high and steady response rate.

Variable-interval Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed, which is used in operant conditioning.