This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If labor supply is increasing in the real wage, then A) the substitution effect is larger than ... (Read 146 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
on: Jun 30, 2018
If labor supply is increasing in the real wage, then
 
  A) the substitution effect is larger than the income effect.
  B) the income effect is larger than the substitution effect.
  C) the production function is increasing in labor.
  D) the marginal product of labor is decreasing.

Question 2

As the real wage increases, assuming that the substitution effect dominates, then
 
  a. individuals move to lower indifferent curves and consume less leisure.
  b. individuals move to higher indifferent curves and consume less leisure.
  c. individuals move to higher indifferent curves and consume more leisure.
  d. individuals stay on the same indifferent curve and consume more leisure.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

anyusername12131

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


Beheh

  • Member
  • Posts: 520
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

chereeb

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Habituation to the Aversive Effect of the Odor of Pups Habituation to the Aversive Effect of the Odor of Pups
Some Hall-effect sensors look like magnetic sensors. This Hall-effect camshaft reference sensor and ... Some Hall-effect sensors look like magnetic sensors. This Hall-effect camshaft reference sensor and ...
Minerals are nonrenewable resources in limited supply Minerals are nonrenewable resources in limited supply
First-Pass Effect First-Pass Effect
An educational institution has total direct labor and material costs of $1964 per student. Its ... An educational institution has total direct labor and material costs of $1964 per student. Its ...
Chloride and bicarbonate exchange in the renal tubules and effect of aldosterone on excretion of H+ Chloride and bicarbonate exchange in the renal tubules and effect of aldosterone on excretion of H+
Video: Cardiac Cycle (Part 2 of 4)

For a complete list of videos, visit our video library