If a Person Supplies Fewer Hours of Labor in Response

question 40

Multiple Choice

If a person supplies fewer hours of labor in response to a wage increase,then

• A) the substitution effect is greater than the income effect.
• B) the income effect is greater than the substitution effect.
• C) the income effect equals the substitution effect.
• D) the person is not maximizing utility.

---

Definitions:

Self-Awareness

Being aware of one's own identity, sentiments, intentions, and aspirations.

Long-Term Goals

Objectives or targets that an individual or organization aims to achieve over an extended period, often requiring considerable time and effort.

Self-Regulation

The method through which people regulate their actions, feelings, and cognitions to attain extended objectives.

Incremental Theorists

Individuals who believe that abilities and intelligence can grow and improve over time through effort and learning.