The Substitution Effect in an Individual's Labor/leisure Choice Is That

question 34

Multiple Choice

The substitution effect in an individual's labor/leisure choice is that

• A)lower wages cause firms to operate less often.
• B)a higher wage makes work less necessary, so less of it is done.
• C)a higher wage makes work a more attractive alternative, so more work results.
• D)work and leisure can be substituted for one another because they are generally mutually exclusive activities.
• E)a lower wage makes leisure less attractive as an alternative, and less leisure is consumed.

---

Definitions:

Cholesterol Intake

The amount of cholesterol consumed through the diet, an important factor in managing risks for heart disease.

Fat Intake

The amount of fat consumed in one's diet, important for nutritional balance and health.

Resting Energy Expenditure (REE)

The amount of energy, measured in calories, that a person expends while at rest, essential for understanding metabolic health and nutritional needs.

Basal Metabolic Rate (BMR)

Amount of energy used in a unit of time by a fasting, resting subject to maintain vital functions.