The Substitution Effect of a Wage Decrease in the Work-Leisure

question 447

Multiple Choice

The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to

• A)work less than before.
• B)work more than before.
• C)possibly work more or less than before.
• D)work more with a higher level of consumption.

---

Definitions:

Response Competition

A concept in behavior theory where multiple responses or behaviors compete with each other for expression.

Competition of Motives

a concept in psychology where multiple drives or motives within an individual compete for expression, affecting behavior and decision-making.

Anticipatory Pain

The expectation or fear of pain that can occur before an actual painful stimulus is experienced.

Avoidance Behavior

Actions taken to prevent or evade a perceived negative outcome or noxious stimulus.