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.

Question

Quizplus · Accepted Answer

The Answer of 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.

Which of the Following Statements Is Not Correct