MCQOPTIONS
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| 1. |
The substitution effect of higher wages suggests that as the wage rate increases ? |
| A. | leisure becomes less expensive and households buy more of it |
| B. | leisure becomes more expensive and households buy more of it |
| C. | leisure becomes more expensive and households buy less of it |
| D. | leisure becomes less expensive and households buy less of it. |
| Answer» D. leisure becomes less expensive and households buy less of it. | |