When the ________ effect dominates the ________ effect, the labor ...

[pane00]

When the ________ effect dominates the ________ effect, the labor supply curve is ________.
 
  A) income; substitution; vertical
  B) substitution; income; positively sloped
  C) income; substitution; negatively sloped
  D) substitution; income; horizontal

Question 2

The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What is the efficient amount of paper?
 
  A) 10 tons per week
  B) 60 tons per week
  C) 40 tons per week
  D) 30 tons per week

[triiciiaa]

Answer to Question 1

C

Answer to Question 2

D