If an individual's supply of labor curve is positively sloped throughout, then
a. the substitution effect always dominates the income effect.
b. the income effect always dominates the substitution effect.
c. the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels.
d. the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.
a
You might also like to view...
Which of the following expressions gives the present value of future dividends for a company whose current dividend is $5.00 and whose future dividends are expected to grow at rate g?
A) [$5.00(1 - g)]/(i - g) B) [$5.00(1 + g)]/(i + g) C) [$5.00(1 - g)]/(i + g) D) [$5.00(1 + g)]/(i - g)
Which of the following MOST accurately describes the federal budget between 1960 and 2007?
a. By the end of the period expenditures on health and income security were each greater than expenditures on defense. b. By the end of the period expenditures on health and income security were each lower than expenditures on defense. c. Defense, income security, and health all grew as a percentage of the federal budget. d. As a share of the federal budget expenditures on defense and health grew consistently throughout the period while expenditures on income security fell.
In the calculation of a country's GDP per capita, the entire population of the country is included, irrespective of age
a. True b. False Indicate whether the statement is true or false
Suppose that the demand for electricity has been found to be price inelastic. The most likely explanation for this finding is that:
A. few substitutes for electricity exist. B. electricity is sold in a monopoly market. C. electricity is a luxury good. D. the fraction of income spent on electricity is large.