Assume That All Workers Prefer to Work 40 Hours a Week

question 42

Multiple Choice

Assume that all workers prefer to work 40 hours a week at a given wage.If real estate jobs asks workers to rotate between working 20 hours a week and 60 hours a week,which of these workers is likely to work for the lowest relative average hourly pay in real estate?

• A) workers with large income effects
• B) workers with small income effects
• C) workers with large substitution effects
• D) workers with small substitution effects

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