The Income Effect of a Change in Wages Says That

question 202

True/False

The income effect of a change in wages says that as your wage rate rises, you will work more hours, since the opportunity cost of leisure also rises.

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Definitions:

Behaviorism

An approach in psychology that emphasizes the importance of external behavior rather than internal processes and posits that behavior can be studied scientifically without recourse to inner mental states.

Psychodynamic Psychology

A branch of psychology that emphasizes the systemic study of the psychological forces that underlie human behaviour, feelings, and emotions and how they might relate to early experience.

Gestalt Psychology

A school of thought that emphasizes looking at the whole of anything, including perception and human behavior, rather than its parts.

Existentialism

A philosophical theory focusing on individual freedom, choice, and existence, emphasizing the unique experience of the individual.