Because Individuals Initially Own More Time Than They Consume and Sell

question 41

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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