Total income in a country in 2012 is 780 billion. Total expenditure in the country
A) cannot be determined.
B) is greater than 780 billion.
C) is 780 billion.
D) is less than 780 billion.
E) is either less than or equal to 780 billion.
Question 2
Which of the following statements is true?
A) The slope of the labor supply curve depends only on the income effect of a wage rate change.
B) The income effect and the substitution effect of a wage rate change work in the same direction.
C) The income effect and the substitution effect of a wage rate change work in opposite directions.
D) The slope of the labor supply curve depends only on the substitution effect of a wage rate change.
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