Solved

Which of the Following Statements Is Not Correct

Question 347

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions