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As the Wage Rate Decreases, the Amount of Time Spent

Question 121

Multiple Choice

As the wage rate decreases, the amount of time spent on market work usually


A) increases because the opportunity cost of nonmarket work increases
B) increases because of the substitution effect
C) decreases because of the income effect
D) decreases because the value of leisure time increases
E) decreases because the opportunity cost of leisure declines

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