Economic Studies of Lottery Winners and People Who Have Inherited

Multiple Choice

Economic studies of lottery winners and people who have inherited large amounts of money show that

A) the income effect likely outweighs the substitution effect for most people.
B) the substitution effect likely outweighs the income effect for most people.
C) most people view leisure as an inferior good.
D) most people's labor supply is unaffected by changes in wealth.