The combined effect (both income and substitution) of a wage increase is that
A) if the substitution effect outweighs the income effect, the labor supply curve slopes upward, but if the income effect outweighs the substitution effect, the labor supply curve is backward bending.
B) the income effect always dominates, leading to less work at a higher wage.
C) if the substitution effect outweighs the income effect, the labor supply curve is backward bending, but if the income effect outweighs the substitution effect, the labor supply curve slopes upward.
D) the substitution effect always dominates, leading to more work at a higher wage.
Question 2
Advertising is the action of a firm that is intended to maintain the differentiation of its product over time.
Indicate whether the statement is true or false
The Greenhouse Effect
The Greenhouse Effect
Modern machinery has helped farmers increase yields
The Coriolis Effect
compton effect
Construct a Lorenz curve that shows income distribution in this society.