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:

Fallacy of Equivocation

A logical fallacy that occurs when a word is used in two different senses in an argument, leading to a misleading or ambiguous conclusion.

Crusaders

Participants in the Crusades, which were military campaigns sanctioned by the Latin Church in the medieval period, primarily against Muslim territories in the Levant.

Believe in God

The faith or conviction in the existence of a deity or deities.

Post Hoc Fallacy

A logical fallacy that assumes a cause-and-effect relationship because one event follows another in time.