Suppose That Annette Gets an Increase in Her Wage and She

question 5

Multiple Choice

Suppose that Annette gets an increase in her wage and she decides to work fewer hours. For her, the substitution effect of the wage change is

• A) greater than the income effect.
• B) less than the income effect.
• C) exactly offset by the income effect.
• D) zero.

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Definitions:

Big Five

A personality model that outlines five broad dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Researchers

Scientists who study the characteristics that make individuals unique and the processes that influence personality development.

Neuroticism

A trait in personality psychology referring to the tendency to experience negative emotions such as anxiety, anger, or depression more frequently and intensely than others.

Big Five

Refers to the five broad personality traits described by psychology: openness, conscientiousness, extraversion, agreeableness, and neuroticism.