If a Person Responds to a Tax on Wages by Working

question 23

Multiple Choice

If a person responds to a tax on wages by working more,then the:

• A) substitution effect exceeds the income effect.
• B) substitution effect induces the individual to work more.
• C) income effect exceeds the substitution effect.
• D) income effect exactly offsets the substitution effect.

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Definitions:

Heterosexual

A term describing individuals who are sexually attracted to people of the opposite sex.

Conventionally Beautiful

Aesthetic attributes that are widely accepted and appreciated within a society based on prevailing cultural standards.

Chilly Climate

An environment, often within a workplace or educational setting, that is unwelcoming and may subtly or overtly discourage participation from certain groups of people.

Inequity

A situation in which there is an unfair, unequal distribution of resources or opportunities among members of a society.