Higher Wage Rates Allow a Person to Reduce the Hours

question 41

Multiple Choice

Higher wage rates allow a person to reduce the hours worked without losing income.This is known as the

• A)Substitution effect.
• B)Income effect.
• C)Law of diminishing marginal utility.

---

Definitions:

Blood Clotting

The process where blood changes from a liquid to a gel, forming a clot to prevent excessive bleeding.

Cognitive Therapist

A mental health professional specializing in the treatment of mental disorders by changing negative patterns of thought.

Psychodynamically Oriented

Relating to an approach in psychology that emphasizes systematic study of psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experiences.

Traumatic Events

Incidents that cause psychological, physical, or emotional harm or distress, often leading to long-term impacts on an individual's well-being.