Author Question: The income effect of a decrease in the wage rate causes the quantity of labor supplied to a. ... (Read 58 times)

joblessjake · **on:** Jun 30, 2018

The income effect of a decrease in the wage rate causes the quantity of labor supplied to
a. increase
b. increase only if the individual desires more leisure time
c. increase only if the substitution effect outweighs the income effect
d. decrease
e. decrease only if the substitution effect is weaker than the income effect

Question 2

For which of the following groups has the poverty rate declined most in the United States?
a. unmarried heads of households
b. married heads of households
c. less-educated African-Americans
d. African-Americans with high school but not college educations
e. people 65 and older