Henri Is Paid $9 an Hour for the First 40

question 41

Multiple Choice

Henri is paid $9 an hour for the first 40 hours per week that he works.He can also work as many hours overtime as he wishes to.He is paid $15 an hour for every hour that he works beyond 40 hours a week.Leisure is a normal good for Henri and he is currently working some overtime.If his hourly wage for the first 40 hours per week that he works rises to $11 and his wages for overtime remain at $15 per hour, he will choose to work

• A)more hours per week.
• B)more hours per week if and only if his income exceeds his labor income.
• C)the same number of hours per week.
• D)fewer hours per week.
• E)more hours per day if and only if he works less than 20 hours overtime per week.

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Definitions:

Matching Social Security

Matching Social Security is the process where employers contribute an amount equal to the Social Security taxes withheld from their employees' wages, as part of the federal Social Security program.

Old Age Survivors and Disability Insurance (OASDI)

A federal program in the United States that provides benefits to retired individuals, survivors of insured workers, and disabled individuals.

Hospital Insurance (HI)

A form of health insurance that covers hospitalization, certain types of surgery, and additional inpatient services.

Cumulative Wages

The total amount of wages earned by an employee over a specified period, including all bonuses, overtime, and other earnings.