The income effect on labor supply is likely to be a. small because most people don't have the ability to change labor supply on the intensive margin b. large because most people can change labor supply on the intensive margin c. large because tax changes create significant labor supply changes at both the intensive and the extensive margin d. small because regulations prevent people from entering the labor force

The income effect on labor supply is likely to be a. small because most people don't have the ability to change labor supply on the intensive margin b. large because most people can change labor supply on the intensive margin c. large because tax changes create significant labor supply changes at both the intensive and the extensive margin d. small because regulations prevent people from entering the labor force

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 2SQP

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Question

The income effect on labor supply is likely to be

a. small because most people don't have the ability to change labor supply on the intensive margin

b. large because most people can change labor supply on the intensive margin

c. large because tax changes create significant labor supply changes at both the intensive and the extensive margin

d. small because regulations prevent people from entering the labor force

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