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kaarnold98 kaarnold98
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5 years ago

Question 1.

A change in tax rates ________ affect individual's behavior regarding consumption and saving if the change is permanent.



▸ is likely to

▸ will definitely

▸ will negatively

▸ will not

Question 2.

Megan took a pay cut from $10 an hour to $7 an hour. As a result of the wage decrease, Megan desires to work less hours and take more hours of leisure. For Megan



▸ the substitution effect dominates the income effect.

▸ the income effect dominates the substitution effect.

▸ the substitution effect must equal the income effect.

▸ the substitution effect must be zero.
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
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OmamaOmama
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5 years ago
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kaarnold98 Author
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#2
5 years ago
Appreciate the effort, thank you!
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