In Terms of Labor Supply,the Substitution Effect of a Higher

question 162

Multiple Choice

In terms of labor supply,the substitution effect of a higher wage causes a(n) :

• A)increase in leisure time.
• B)increase in the quantity of labor supplied.
• C)substitution of leisure for work.
• D)reduction of work time to zero.

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Definitions:

Neuron

A cell that conducts electrochemical signals; the basic unit of the nervous system; also called a nerve cell.

Dendrites

A neuron’s branches that receive information from other neurons and transmit it toward the cell body.

Axon

A neuron’s extending fiber that conducts impulses away from the cell body and transmits them to other neurons.

Linguistic Skills

The abilities involved in the use and understanding of language, including reading, writing, speaking, and listening.