Over a Lifetime,if the Income Effect Dominates the Substitution Effect,then

question 38

Multiple Choice

Over a lifetime,if the income effect dominates the substitution effect,then

• A) an expected increase in the wage will reduce work hours.
• B) an expected increase in the wage will increase work hours.
• C) an expected increase in the wage will leave work hours unchanged.
• D) any wage increase, expected or unexpected, will reduce work hours in this case.

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