According to supply-side economists, as tax rates are increased, labor supply should decrease. This implies that the substitution effect of a wage change ________ the income effect of a wage change.
A. is equal to
B. has no impact on
C. is greater than
D. is less than
Answer: C
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As a firm increases its output in the short run,
a. it also varies its technology b. it increases all of its inputs c. it increases its plant size d. it increases only one of its inputs e. at least one of its inputs is fixed
Why did the command system fail? (Soviet Union in 1990's)
What will be an ideal response?
Under the gold standard, the government must have enough gold to back up any
A) change in its currency's exchange rate. B) foreign currency deposits in its central bank. C) increase in money demand. D) increase in the money supply.
When individuals use all available information about an economic variable to make a decision, expectations are
A) rational. B) overestimates of reality. C) underestimates of reality. D) accurate.