According to the Substitution Effect, in Response to an Increase

question 28

Multiple Choice

According to the substitution effect, in response to an increase in her wage, a person will

• A) reduce hours worked because she wants to substitute leisure for work.
• B) reduce hours worked because she wants to substitute work for leisure.
• C) increase hours worked because leisure has become relatively more expensive than consumption.
• D) increase hours worked because leisure has become relatively less expensive than consumption.
• E) increase both consumption and hours of leisure.

---

Definitions:

Ethical Decision-Making

The method of assessing and selecting options in a way that aligns with moral values.

Moral Reasoning

The process of determining the right or ethical way to act through the evaluation of complex moral issues and values.

Moral Content

The ethical significance or implications contained within an action, decision, or piece of content.

Metaethics

A branch of ethics that examines the nature, foundations, and meanings of ethical principles, rather than discussing what actions are right or wrong.