Income Effect of Lower Wages Implies

question 69

Multiple Choice

Income effect of lower wages implies

• A)workers prefer leisure to work.
• B)an increase in the productivity of labor.
• C)a fall in the demand for labor.
• D)workers would want to work more.

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Definitions:

Theoretical Foundation

The fundamental principles and assumptions that form the basis for a particular theory or field of study.

ERG Theory

A theory proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, modifying Maslow's hierarchy of needs.

Maslow's Needs

A theory of psychological development outlined by Abraham Maslow that proposes a hierarchy of human needs, from basic physiological needs to self-actualization.

Human Motivation

The internal drive that propels individuals to take action, achieve goals, and satisfy needs and desires.