(Table) Based on the Table, What Must Be TRUE About

question 211

Multiple Choice

(Table) Based on the table, what must be TRUE about the labor supply curve for wage rates above $45 per hour?
$\begin{array}{c}\text { Labor Supply Schedule }\\\begin{array}{|c|c|}\hline \text { Wage rate (\$/hr.) } & \text { Hours of work (per week) } \\\hline 10 & 26 \\\hline 15 & 32 \\\hline 25 & 36 \\\hline 35 & 40 \\\hline 45 & 41 \\\hline 50 & 38 \\\hline\end{array}\end{array}$

• A) Workers substitute work for leisure.
• B) The income effect dominates the substitution effect.
• C) The substitution effect dominates the income effect.
• D) As the wage rate rises, more hours of work are available.

---

Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and the price for which it sells when the bond's market value is lower than its face value.

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a set period, until the debt is fully repaid.

Journal Entry

A record in accounting that shows a business transaction and its effect on the accounts, typically involving a debit and credit.

Interest Expense

The cost incurred by an entity for borrowed funds, referring to the interest payments made on any form of debt for a specific period.