According to the Substitution Effect of Labor Supply, When the Wage

question 115

Multiple Choice

According to the substitution effect of labor supply, when the wage rate goes up

• A) it becomes more costly to consume leisure, so people will work more.
• B) it becomes less costly to consume leisure, so people will work more.
• C) the opportunity cost of enjoying leisure goes down.
• D) firms will hire more workers since people are more willing to work.

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Definitions:

Planning Tasks

The activities involved in defining objectives, strategies, and actions to achieve a specific goal.

Telepresence

Technology that allows a person to feel or appear as if they are present in a location other than their true location.

Nonverbal Signals

Forms of communication without words, such as gestures, facial expressions, and body language, that convey messages or emotions.

Parliamentary Procedure

A set of rules for conduct at meetings that allows everyone to be heard and to make decisions without confusion.