Use the Following to Answer Questions

question 140

Multiple Choice

Use the following to answer questions:
Figure: Davina's Labor Supply Choice
-(Figure: Davina's Labor Supply Choice) The figure Davina's Labor Supply Choice shows Davina's time allocation budget line when her hourly wage is $10 or $15 and she has 80 hours to allocate between labor and leisure; it also shows two of her indifference curves for income and leisure. As Davina's hourly wage rises from $10 to $15:

• A) the income effect is greater than the substitution effect.
• B) the substitution effect is greater than the income effect.
• C) the substitution effect is equal to the income effect.
• D) It is impossible to compare the income and substitution effect.

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Definitions:

Negative Affectivity

A personality trait involving the predisposition to experience negative emotions such as sadness, anxiety, and anger more frequently and intensely than average.

Difficult Temperament

A behavioral profile characterized by high reactivity and low adaptability, often leading to challenges in interactions.

Temperament Classification

A system of categorizing an individual's personality, often based on their typical patterns of behavior, emotion, and mood engagement.

Biological Functioning

The processes and activities through which living organisms or their parts operate and maintain life.