Figure: Work Leisure Refer to the Figure

question 31

Multiple Choice

Figure: Work Leisure Refer to the figure. Which statement is FALSE?

• A) At 13 hours of leisure and income of $45.19, the worker earns a wage of $4.17 an hour.
• B) The labor supply curve is downward sloping.
• C) The substitution effect dominates the income effect.
• D) This worker chooses to work more hours if paid higher wages.

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Definitions:

Asserted

Stated confidently or declared as true.

Disjunctive Syllogism

A logical rule that concludes one disjunct must be false if the other is true, usually in the form: Either A or B; not A; therefore, B.

Unstated Premise

A component of an argument that is not expressed but is assumed to be true for the argument to hold.

Millionaires

Individuals whose net worth or wealth is equal to or exceeds one million units of currency.