The Substitution Effect of a Wage Increase

question 186

Multiple Choice

The substitution effect of a wage increase

• A)probably leads most workers to want to work more.
• B)certainly leads all workers to want to work more.
• C)probably leads most workers to want to work less.
• D)certainly leads most firms to want to employ more workers.

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Definitions:

Associative Learning

Learning that certain events occur together. The events may be two stimuli (as in classical conditioning) or a response and its consequence (as in operant conditioning).

Cognitive Learning

The process of acquiring new knowledge and understanding through thought, experiences, and the senses.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, in the context of operant conditioning.

Operant Behaviors

Responses or actions that are controlled by their consequences, including rewards or punishments, underscoring the principles of operant conditioning.