Question: A regression model is estimated where the dependent variable is hours of work and the independent variables are the wage rate and non-labor income. The

A regression model is estimated where the dependent variable is hours of work and the independent variables are the wage rate and non-labor income. The coefficient on the wage rate is -.02 and the coefficient on non-labor income is -.05. Both are statistically significant. This suggests that: Group of answer choices (B) The income effect associated with an increase in the wage rate is greater than the substitution effect. (C) The income effect associated with an increase in the wage rate is less than the substitution effect. (A) and (C) (A) Leisure is inferior (A) and (B)

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