Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 23

Indicate in each of the following instances whether the specified circumstances will cause a worker to want to work more or fewer hours:
a. The wage rate increases and the substitution effect is greater than the income effect.
b. The wage rate decreases and the income effect is greater than the substitu­tion effect.
c. The wage rate decreases and the substitution effect is greater than the income effect.
d. The wage rate increases and the income effect is greater than the substitution effect.