Multiple Choice
Which of the following statements is not correct?
A) If Fiona gets a higher wage and works more, the substitution effect is greater than the income effect for her.
B) If Miguel experiences a wage decrease and works less, the income effect is greater than the substitution effect for him.
C) If the substitution effect is greater than the income effect, the labor-supply curve is upward sloping.
D) If the income effect is greater than the substitution effect, the labor-supply curve is downward sloping.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: The direction of the substitution effect is
Q342: When the price of an inferior good
Q343: Hold the prices of goods, as well
Q344: Figure 21-18 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-18
Q345: A consumer chooses an optimal consumption point
Q346: Figure 21-6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-6
Q349: An optimizing consumer will select a consumption
Q350: Figure 21-31 The figure shows two indifference
Q351: Just as the theory of the competitive
Q352: The substitution effect of an increase in