Because individuals initially own more time than they consume and sell the difference to their employers:
A. the direction of the income effect is the opposite than it is for other goods.
B. the direction of the income effect is the same as it is for other goods.
C. there is no income effect resulting from a change in the individual's wage rate.
D. the income effect of a wage change is relatively small.
A. the direction of the income effect is the opposite than it is for other goods.
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Which of the following goods is likely to have the lowest price elasticity of demand?
A) Life-saving drugs B) Potato chips C) Chocolates D) Decorative flowers
Barriers to entry reduce the likelihood that price-setter firms will see their positive economic profits competed away over time
Indicate whether the statement is true or false
Which of the following are most likely to be in poverty?
a. Families headed by a male b. White males c. Disabled people d. Married couples e. People with a college degree
Answer the following questions:
a. What is meant by the term "business cycle"? b. What economic indicators would indicate where the economy is in the business cycle? Explain. c. Give the four phases of the business cycle in their order of occurrence. d. What criterion must be met for our economy to be officially in a recession?