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The substitution effect of a wage rate increase suggests that

spruckj

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The substitution effect of a wage rate increase suggests that

Question 1.

The opportunity cost of leisure will rise if

▸ the wage rate increases.

▸ the wage rate decreases.

▸ nonlabor income increases.

▸ nonlabor income decreases.

Question 2.

The substitution effect of a wage rate increase suggests that

▸ individuals will supply more work.

▸ individuals will supply less work.

▸ individuals will consume more leisure.

▸ individuals will supply more work and consume more leisure.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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spruckj Author

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Brilliant ツ

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Correct

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