If the Wage Rate Increases,the Substitution Effect Gives a Household

question 3

Multiple Choice

If the wage rate increases,the substitution effect gives a household the incentive to

• A)raise its reservation wage.
• B)increase leisure and decrease work.
• C)increase work and decrease leisure.
• D)increase both work and leisure.
• E)decrease both work and leisure.

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Definitions:

Benefits Plan

A set of health care, retirement, and other perks offered by employers to their employees beyond the regular salary or wage.

Decreased Overall Plan Costs

Refers to the reduction in total expenses associated with a particular plan, often aimed at making insurance plans, benefit programs, or operational activities more efficient and cost-effective.

Work And Personal Activities

The blend or balance between a person's job responsibilities and their personal life, interests, and commitments.

Paid Time Off

An employee benefit where workers get paid while being away from work for certain reasons, such as vacation, illness, or personal time.