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Question 1 : ( 8 points total ) Please indicate whether each statement is true, false, or uncertain. If your answer is false or uncertain,
Question : points total Please indicate whether each statement is true, false, or uncertain. If your answer is false or uncertain, please provide a brief explanation points each
a Assuming lowskill labor and high skill labor are complements, then a reduction in the wage of highskill workers should lead to increased hiring of lowskilled workers, all else equal.
b In the short run with only labor and capital as inputs, the substitution effect of wages on the amount of labor demanded is positive.
c After a wage increase, consumption is predicted to increase on average.
d After a wage increase, leisure is predicted to increase on average.
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