​For a Typical Person Who Is Currently Earning a Low

question 117

Multiple Choice

​For a typical person who is currently earning a low wage rate, the:

• A)substitution effect of a wage rate increase usually is stronger than the income effect.
• B)substitution effect of a wage rate increase usually is weaker than the income effect.
• C)income effect of a wage rate increase usually is zero.
• D)substitution effect of a wage rate increase usually is zero.
• E)substitution and income effects of a wage rate increase tend to work in the same direction.

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Definitions:

Positively Correlated

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Average Daily Temperature

The mean temperature calculated by averaging the highest and lowest temperatures recorded in a 24-hour period.

Computer Games

Electronic games played using a personal computer or gaming console, involving interaction with user interface or input device for visual feedback.

Positive Correlation

A relationship between two variables in which both variables move in tandem.