The income effect of a wage rate decrease should lead to
A. a decrease in quantity of labor supplied and an increase in leisure.
B. an increase in the quantity of labor supplied and a decrease in leisure.
C. a decrease in the quantity of labor supplied and a decrease in leisure.
D. an increase in the quantity of labor supplied and an increase in leisure.
Answer: B
You might also like to view...
Coffee is an example of a product that has been successfully labeled and marketed based on its production method or environmental protection
Indicate whether the statement is true or false
If a monopolistically competitive firm raises its price,
a. quantity demanded falls to zero b. quantity demanded declines, but not to zero c. the market supply curve shifts outward d. the market supply curve shifts inward e. quantity demanded remains constant
Which of the following is purchased in a product market?
A. The skills of an X-ray technician. B. Undeveloped farmland in Texas. C. Crude oil. D. Cell phone service.
Which of the following often involves positive external benefits?
A. water pollution B. drunken driving C. tobacco smoking D. inoculation programs