For which of the following workers would the income effect be more likely to outweigh the substitution effect of an increase in wage?
A)gardener
B)teacher
C)professional athlete
D)plumber

Question

For which of the following workers would the income effect be more likely to outweigh the substitution effect of an increase in wage?
A)gardener 
B)teacher 
C)professional athlete 
D)plumber

Quizplus · Accepted Answer

Professional athletes often have high incomes, so an increase in wages might lead them to value leisure more, thus the income effect could outweigh the substitution effect.

For Which of the Following Workers Would the Income Effect