Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?

Related Mcqs:

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because ?

A. Such redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair. B. such redistribution would not maximize the total income of all members of society C. Such redistribution would remove the incentive to work hard, so society’s total income would fall, and … Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because ?Read More...

Current anti-poverty programs discourage work because ?

A. benefits are reduced at such a high rate when recipients earn more income that there is little or no incentive to work once one is receiving benefits. B. in order to be eligible for benefits a recipient cannot have a job C. they make recipients more comfortable than most middle-class citizens. D. anti-poverty programs … Current anti-poverty programs discourage work because ?Read More...

A Gini coefficient of one means that ?

A. all the income is received by the top 20% of the income distribution B. income is distributed equally C. the income is split equally between the top 20% and the rest of the distribution. D. one family has all the income and every one else has nothing....

The greatest advantage of a negative income tax is that it ?

A. generates a smaller disincentive to work than most alternative anti-poverty policies. B. reduces the cost to the government of fighting poverty C. would not provide benefits to lazy people D. ensures that the poor actually receive what the government thinks they need does all these answers....

VAT is a good example of which kind of tax ?

A. specific B. Direct C. Ad valorem D. Excise duty...