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Coltonht Coltonht
wrote...
Posts: 430
5 years ago

Question 1.

If the wage rate increases, the substitution effect is for a person to work less and the income effect is for a person to take less leisure.



▸ true

▸ false

Question 2.

A decrease in corporate profits, resulting in a decline in dividend payments, will decrease consumption and decrease labor supply.



▸ true

▸ false
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
Read 115 times
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Answer verified by a subject expert
DryPhantomDryPhantom
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Posts: 382
5 years ago
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Coltonht Author
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5 years ago
Thanks for your help!
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