For a Nonparticipant,the Substitution Effect Is and the Income Effect

question 21

Multiple Choice

For a nonparticipant,the substitution effect is and the income effect is.

• A) zero,zero
• B) zero,negative
• C) zero,positive
• D) negative,zero
• E) positive,zero

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Definitions:

Mean

The mean, or average, of a series of numbers is obtained by dividing the sum of the numbers by how many numbers there are.

Smallest Value

The minimum value in a set of data points.

Negative

A term that describes a value less than zero, indicating direction, charge, or a decrease in a measurable quantity.

Central Location

A statistical term that refers to the center or typical value in a set of data, often measured by mean, median, or mode.