If the Income Effect Is Greater Than the Substitution Effect

question 162

Multiple Choice

If the income effect is greater than the substitution effect, the labor supply curve

• A) is horizontal.
• B) is vertical.
• C) has a negative slope.
• D) has a positive slope.

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Definitions:

Voucher System

A control process in accounting where vouchers are used to authorize and record transactions before payments are made.

Internal Control

Processes and procedures implemented by a company to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Information

Data that is processed, organized, structured, or presented in a given context to make it meaningful and useful.

Voucher

A written document that serves as evidence of a transaction and authorizes payment.