1. When the minimum wage is raised in a competitive market, ceteris paribus:
a. All workers are better off.
b. All workers are worse off.
c. Some workers are better off and some are worse off.
d. Workers are not affected by a minimum wage increase, only by decreases.
2. Kelly will work more hours if her salary increases.
For Kelly, the ___________ effect must outweigh the __________ effect.
a. substitution; income
b. income; substitution
c. income; utility
d. utility; substitution