For the Past Year, Teddy Has Had a Part-Time Job

question 55

Multiple Choice

For the past year, Teddy has had a part-time job at which he is willing to work 30 hours each week. During Teddy's annual review, his boss grants him an 8 percent increase in his wage. As a result of the wage increase, Teddy is now willing to work 25 hours each week. Teddy's opportunity cost of ________ has risen and because for Teddy the substitution effect of the wage hike is ________ than the income effect.

• A) work; greater
• B) work; less
• C) leisure; greater
• D) leisure; less

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Definitions:

Identity Confusion

A state in which an individual experiences uncertainty, conflict, or disorder regarding their personal identity or role in society.

Trust Versus Mistrust

A stage in Erik Erikson's theory of psychosocial development where an infant learns to trust their caregivers and environment or develops mistrust.

Generativity Versus Stagnation

According to Erikson, a major developmental task of later adulthood is finding meaning in one’s work, which produces a sense of generativity. Failure leads to a sense of stagnation.

Generativity

A term often used in psychology to denote a concern for establishing and guiding the next generation, typically expressed during middle adulthood.