When an individual's wage rises, the substitution effect tends ...

[CBme]

When an individual's wage rises, the substitution effect tends to:
 a. increase hours worked.
  b. decrease hours worked.
  c. leave hours worked unchanged.
  d. an impossible prediction about what will happen to hours worked.

Question 2

An example of moral hazard is
 a. people drive as carefully in icy conditions with antilock brakes as without
  b. people drive less safely with more airbags as without
  c. football players avoid 'spearing' with their heads even with safer helmets
  d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription

[Dominic]

Answer to Question 1

a

Answer to Question 2

b

[CBme]

Excellent

[ebonylittles]

Thanks for the timely response, appreciate it