The Income and Substitution Effects of a Change in the Wage

question 132

Multiple Choice

The income and substitution effects of a change in the wage rate

• A)always work in the same direction
• B)always work in opposite directions
• C)work in opposite directions only if the change is a decrease
• D)work in the same direction only if the change is an increase
• E)work in the same direction only if the change is a decrease

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Definitions:

Act of God

An unforeseeable natural event, such as an earthquake, flood, or tornado, that cannot be prevented and is excluded from legal liability.

Libel

Defamation in some permanent form, such as in writing, a cartoon, etc.

Defence to Negligence

Legal reasons provided by a defendant in a lawsuit to prove they were not negligent or to mitigate their level of responsibility for an incident.

Waiver

The deliberate act of relinquishing a right, claim, or privilege.