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If the Wage Rate Decreases, the Substitution Effect Is for a Person

question 97

True/False

If the wage rate decreases, the substitution effect is for a person to work more and the income effect is for a person to take more leisure.


Definitions:

Capital Stock

The total amount of shares a company can issue, as authorized by its corporate charter.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Debts Of Entity

Financial obligations that a company or individual owes to external parties or creditors.

Monetary Unit Assumption

An accounting principle that assumes money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis.

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