Suppose That an Individual Has Chosen Not to Work

question 17

Multiple Choice

Suppose that an individual has chosen not to work.Then a change in the wage rate

• A) Creates a substitution effect, but no income effect
• B) Creates an income effect, but no substitution effect
• C) Creates both and income and substitution effect
• D) Creates neither an income effect nor a substitution effect

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Definitions:

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without the conscious intention to deceive.

Imagined Event

A scenario or occurrence that is created in the mind but has not actually happened in reality.

Explicit Memory

A type of long-term memory that involves conscious recollection of specific facts and events.

Conscious Recollection

The process of intentionally remembering or recalling information from one's past.