The Substitution Effect of an Increase in the Wage Rate

question 30

Multiple Choice

The substitution effect of an increase in the wage rate on the quantity of leisure demanded

• A)Makes leisure more expensive which leads people to work more
• B)Makes leisure less expensive which causes people to work less
• C)Gives people more purchasing power and causes people to demand more leisure
• D)Gives people less purchasing power and so they will demand less leisure

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Definitions:

Evolutionary Pathway

A sequence of genetic, structural, or functional changes that occur in a biological lineage over time leading to diversification and speciation.

Notochord

A flexible rod-like structure that provides support in all embryonic and some adult chordate animals.

Amniotic Egg

An egg with a protective amniotic membrane, enabling the embryo to develop outside the mother's body, characteristic of reptiles, birds, and certain mammals.

Homo Habilis

An extinct species of early human that lived approximately 2.1 to 1.5 million years ago, known for using stone tools.