All of the Following Would Tend to Increase a Worker's

question 2

Multiple Choice

All of the following would tend to increase a worker's wage except

• A) working the night shift.
• B) working harder.
• C) more education.
• D) having a greater amount of natural ability.
• E) doing a job that is fun.

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Definitions:

Income Effect

The change in consumption resulting from a change in real income, which can stem from increases or decreases in wages, or from price changes affecting the purchasing power of income.

Substitution Effect

The change in consumption resulting from a change in the price of a product, leading consumers to substitute that product with another.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Opportunity Cost

The cost of not choosing the next best alternative when making a decision.