When the Wage Rate Rises,a Worker Chooses to Replace Some

question 54

Multiple Choice

When the wage rate rises,a worker chooses to replace some leisure hours with work hours,even if he would remain equally well off.This phenomenon is known as

• A) compensating differential.
• B) the income effect.
• C) the substitution effect.
• D) intertemporal substitution.

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Definitions:

Organizational Practices

Organizational practices encompass routines, policies, and procedures that define how an organization operates and engages with its employees and stakeholders.

Intellectual Capital

The collective knowledge, skills, and innovative potential possessed by an organization's employees that can be leveraged to create value.

Stock Of Knowledge

The accumulated body of facts, information, and skills that an individual or society possesses, which is built over time through experience and education.

Open System Organizations

Organizations that interact with their environment, adapting and evolving in response to external inputs and changes.