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aksik [14]
3 years ago
7

A higher wage rate will lead to increases in the amount of laborsupplied if the:a. income effect is stronger than the substituti

on effect.b. substitution effect is stronger than the income effect.c. income and substitution effects cancel each other out.d. income and substitution effects are both negative.e. income and substitution effects are not present.
Business
1 answer:
tresset_1 [31]3 years ago
3 0

Answer: The correct answer is "B). substitution effect is stronger than the income effect."

Explanation: A higher wage rate will lead to increases in the amount of laborsupplied if the substitution effect is stronger than the income effect, this happens because this happens because if the substitution effect is stronger than the income effect increases the additional benefit for a worker.

Because if the income effect were greater than the substitution effect the worker would earn more in less time and decrease the amount of labor supplied.

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When a manufacturing company uses direct​ materials, it assigns the cost by debiting Work-in-Process Inventory.

<u>Option: B</u>

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3 years ago
A corporate bond with a 6% coupon (paid semiannually) has a yield to maturity of 7.5%. The bond matures in 20 years but is calla
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Answer:

Yield to Call = 8.66%

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