Question
The substitution effect of an increase in the wage rate on the quantity of leisure demanded A Makes leisure more expensive which leads people to
The substitution effect of an increase in the wage rate on the quantity of leisure demanded
A Makes leisure more expensive which leads people to work more
B Makes leisure less expensive which causes people to work less
C Gives people more purchasing power and causes people to demand more leisure
D Gives people less purchasing power and so they will demand less leisure
The positively sloped portion of the supply curve for labour implies that
A Higher wages lead to less hours of work supplied
B The law of diminishing returns has set in
C Higher wages lead to more hours of work supplied
D A minimum wage law is in effect
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