Which of the following statements is false? Marks
A. A reservation wage is the wage below which a person will not work in the labour market.
B. If the wages rise, it is possible to observe both the substitution and income effects.
C. Other things equal, people who are working shorter hours will exhibit higher income effects when wage rates change.
D. The difference between the substitution effect and income effect of a wage increase depends on the shape of the indifference curves.
