If Wages Decrease and Workers Choose to Work More Hours

question 214

Multiple Choice

If wages decrease and workers choose to work more hours or more shifts, their behavior is evidence of

• A)the substitution effect.
• B)the income effect.
• C)rational expectations.
• D)rational ignorance.

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Definitions:

Type A Personality

A personality type characterized by competitiveness, high ambition, impatience, and a high level of stress.

Achievement Motivation

A psychological concept involving an individual’s desire to meet standards of excellence and accomplish set goals.

Driving Habits

Patterns and behaviors demonstrated by individuals while operating motor vehicles, which can include aspects such as speed, adherence to traffic laws, and reactions to external stimuli.

Dispositional Optimism

A psychological attribute characterized by the general expectation that good things will happen in the future.