An Increase in the Wage Rate Will

question 116

Multiple Choice

An increase in the wage rate will:

• A) normally generate a small income effect.
• B) generate a significant decrease in after-tax income.
• C) possibly lead people to choose more leisure rather than work more, since leisure is a normal good.
• D) cause businesses to increase the number of employees to reduce costs.

---

Definitions:

Non-Hispanic Whites

People of European descent living in the United States who do not identify as Hispanic or Latino.

Population Groups

Refer to categories of people differentiated by shared characteristics such as nationality, age, or socioeconomic status.

Total Population

All members of a specified group, community, or country being studied or referred to in a particular context.

Cultural Competence

The ability to understand, appreciate, and interact effectively with people from different cultural backgrounds.