Author Question: When an individual's wage rises, the substitution effect tends to: a. increase hours worked. b. ... (Read 27 times)

CBme · **on:** Jul 1, 2018

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