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Which of the Following Statements Is Not Correct

Question 48

Multiple Choice

Which of the following statements is not correct?


A) If Zehra gets a lower wage and works less, the substitution effect is greater than the income effect.
B) If Justin experiences a wage decrease and works less, the income effect is greater than the substitution effect.
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.

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