Sadie Works at a Factory for $15 an Hour and Typically

question 139

Multiple Choice

Sadie works at a factory for $15 an hour and typically works 40 hours a week.Sadie gets a pay raise and now earns $20 an hour.She decides to work 45 hours a week at $20 an hour.Her response to the pay increase demonstrates the:

• A) income effect outweighing the price effect.
• B) price effect outweighing the income effect.
• C) income effect outweighing the substitution effect.
• D) labor effect outweighing the price effect.

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Definitions:

White House

The formal dwelling and office of the United States President, positioned at 1600 Pennsylvania Avenue NW, Washington, D.C.

1824

The year marked by the United States presidential election, which was ultimately decided in the House of Representatives, leading to John Quincy Adams’ presidency.

American System

An economic plan that played a prominent role in American policy during the first half of the 19th century, rooted in the belief in protectionism, a national bank, and internal improvements (such as roads and canals) to foster commerce and strengthen the nation.

Whigs

A political party active in the 19th century United States that advocated for federal government support of internal improvements and a national bank.