Author Question: By itself, the substitution effect of an increase in the wage rate will a. always lead to an ... (Read 38 times)

waynest · **on:** Jun 30, 2018

By itself, the substitution effect of an increase in the wage rate will
a. always lead to an increase in the quantity of labor supplied
b. always lead to a decrease in the quantity of labor supplied
c. lead to an increase in the quantity of labor supplied only if leisure is like a normal good
d. lead to an increase in the quantity of labor supplied only if leisure is not a normal good
e. lead to an increase in the quantity of labor supplied only if the income effect works in the same direction

Question 2

Which of the following is not means-tested?
a. Temporary Assistance for Needy Families (TANF)
b. welfare programs
c. the Food Stamp program
d. Social Security payments to a retiree
e. free and reduced price school lunches for the poor