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What Does Economic Theory Predict Will Be the Result of an Increase

Question 137

Multiple Choice
What does economic theory predict will be the result of an increase in wages
A)It will cause a wage earner to work more if there is a dominant income effect.
B)It will cause a wage earner to work less if there is a dominant substitution effect.
C)It will cause a wage earner to enjoy less leisure if there is a dominant income effect.
D)It will cause a wage earner to enjoy more leisure if there is a dominant income effect.

What does economic theory predict will be the result of an increase in wages


A) It will cause a wage earner to work more if there is a dominant income effect.
B) It will cause a wage earner to work less if there is a dominant substitution effect.
C) It will cause a wage earner to enjoy less leisure if there is a dominant income effect.
D) It will cause a wage earner to enjoy more leisure if there is a dominant income effect.

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