According to the Lucas Supply Function, Workers Who Experience a Positive

question 267

Multiple Choice

According to the Lucas supply function, workers who experience a positive price surprise will work fewer hours when

• A) there is no substitution effect from a positive price surprise.
• B) there is no income effect from a positive price surprise.
• C) the substitution effect dominates the income effect.
• D) the income effect dominates the substitution effect.

---

Definitions:

ADHD

A neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsiveness.

Diagnosed

The identification of the nature of an illness or other problem by examination of the symptoms.

Percent

A unit of measurement that represents one hundredth of a whole.

Stimulant

A class of drugs that increase the activity of the nervous system, resulting in increased alertness, attention, and energy.