Tim Works 51 Hours Per Week, and His Wage Is

question 233

Multiple Choice

Tim works 51 hours per week, and his wage is $35 per hour.If his wage increases to $70 per hour, then:

• A)the substitution effect implies that he will work less.
• B)if leisure is a normal good, the income effect implies that he will work more.
• C)if leisure is a normal good, the income effect will reinforce the substitution effect and he will work more.
• D)the substitution effect implies that he will work more.

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Definitions:

Bank Service Charge

Fees charged by banks for maintaining accounts and providing various banking services.