The Substitution Effect of Wages States That a Decreased Wage

question 83

Multiple Choice

The substitution effect of wages states that a decreased wage rate

• A)Encourages people to consume less leisure.
• B)Will shift the labor supply curve rightward.
• C)Will lead to a movement up along the existing supply curve.
• D)Encourages people to work less hours.

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Definitions:

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, such as money, grades, or praise.

Vicarious Learning

A learning process where individuals gain knowledge or skills through observing others’ actions, behaviors, and consequences, rather than through direct experience.

Primary Reinforcers

Innate rewarding elements such as food, water, or shelter, that satisfy biological needs and motivate behavior without prior learning.

Aversive Events

Unpleasant or harmful events or stimuli that an individual seeks to avoid or minimize.