Which of the Following Is True for Most Wage Earners

Multiple Choice

Which of the following is true for most wage earners?

A) The income effect of a wage rate increase is likely to be larger than the substitution effect.
B) The substitution effect of a wage rate increase is likely to equal the income effect.
C) The opportunity cost of leisure is high.
D) The substitution effect of a wage rate increase is likely to be larger than the income effect.