Use the Following to Answer Questions

question 249

Multiple Choice

Use the following to answer questions:
Figure: Joanna's Time Allocation Budget Line
-(Figure: Joanna's Time Allocation Budget Line) Joanna's Time Allocation Budget Line depicts what happens when she can choose how to spend 40 hours. If Joanna's wage rate increases and she ends up working more hours, for her:

• A) the substitution effect dominates.
• B) the income effect dominates.
• C) the substitution and income effects cancel each other out.
• D) the substitution effect becomes ineffective.

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Definitions:

Self-Enhancement Motive

The inherent desire to improve one’s self-image and to present oneself in a positive light to others.

Self-Enhancement Motive

The drive to maintain or improve one’s self-view or self-esteem, often by focusing on positive feedback and downplaying negatives.

Appraisal Motive

The desire to learn the truth about oneself, including one's traits, abilities, and feelings.

Consistency Motive

The driving force behind individuals' desire to maintain harmony and consistency among their beliefs, attitudes, and behaviors.