For the Past Year, Ted Has Had a Part- Time

question 89

Multiple Choice

For the past year, Ted has had a part- time job at which he is willing to work 10 hours each week. During Ted's annual review, his boss grants him an 8 per cent increase in his wage. As a result of the wage increase, Ted is now willing to work 15 hours each week. Ted's opportunity cost of _______
Has risen and for Ted the substitution effect of the wage hike is _______ than the income effect.

• A) work; less
• B) leisure; less
• C) leisure; greater
• D) work; greater

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial interest in its performance.

Nonprofit Corporations

Organizations that operate for charitable, educational, religious, or public service objectives, not for profit, and often eligible for tax-exempt status.

Personal Liability

The legal responsibility of an individual to cover debts or damages from their own assets, without shield from business or professional roles.

Charitable Associations

Organizations established for philanthropic rather than financial gain, focusing on promoting welfare and social improvement.