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

question 79

Multiple Choice

(Table) Based on the table, what must be TRUE about the labor supply curve as the wage rate rises from $50 to $60 per hour?
$\begin{array}{c}\text { Labor Supply Schedule }\\\begin{array}{|c|c|}\hline \text { Wage Rate (S/hr.) } & \text { Hours of Work (per week) } \\\hline 20 & 30 \\\hline 30 & 40 \\\hline 40 & 50 \\\hline 50 & 40 \\\hline 60 & 30 \\\hline\end{array}\end{array}$

• A) As wages increase, fewer hours of leisure are consumed.
• 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.

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Definitions:

Landrum-Griffin Act

A U.S. law enacted in 1959 to regulate labor unions' internal affairs and their officials' relationship with employers.

Internal Affairs

A division within a police department or other organization that investigates incidents involving its own members, ensuring operational integrity.

Honesty

The quality of being fair, truthful, and sincere in one's actions, statements, and relationships.

Democracy

A form of government in which power rests in the hands of the people, typically exercised through elected representatives.