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Author Question: Assume that the substitution effect dominates the income effect. An increase in both consumption and ... (Read 37 times)

geoffrey

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on: Apr 19, 2019

Question 1

Assume that the substitution effect dominates the income effect. When the government raises tax rates, after-tax real wage rates


◦ fall, consumption decreases, and labor supply increases.
◦ fall, consumption decreases, and labor supply decreases.
◦ rise, consumption increases, and labor supply increases.
◦ fall, consumption increases, and labor supply decreases.

Question 2

Assume that the substitution effect dominates the income effect. An increase in both consumption and labor supply would result from


◦ a decrease in tax rates.
◦ a decrease in transfer payments.
◦ an increase in tax rates.
◦ an increase in transfer payments.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by geoffrey on Apr 19, 2019

abctaiwan

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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geoffrey

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Reply #2 on: Apr 19, 2019
Thank you!


abctaiwan

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Reply #3 on: Apr 19, 2019
Always glad to help...


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