Suppose you could choose how many hours a week you will work and you are currently earning $50 an hour and working 40 hours a week. If you got a pay increase to $60 an hour and decided to work 45 hours, then we may conclude that your
A. income effect outweighed your substitution effect.
B. substitution effect outweighed your income effect.
C. substitution effect was equal to your income effect.
B. substitution effect outweighed your income effect.
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Short-term loans between banks are called
A) federal funds. B) repurchase agreements. C) repos. D) discount loans.
Why are economic growth and saving related?
What will be an ideal response?
A critical assumption in economist A. P. Lerner's theory explaining why society's total utility is maximized with income equality is
a. there is no "level playing field" in people's choice of employment b. people have identical utility functions c. the rich earn their income by exploiting the poor d. people have equal skills if given equal opportunity e. the law of diminishing marginal utility does not apply to money
In Figure 1.6, if the opportunity cost of producing cars was zero at all levels of production, the production possibilities curve would be best be represented by a
A. Horizontal line. B. 45-degree line starting at the origin. C. Vertical line. D. Circle.