The Income Effect of an Increase in the Wage Rate

question 19

Multiple Choice

The income 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 work less
• D)Gives people less purchasing power and so they will work more

---

Definitions:

Microsoft Email Address

An email account provided by Microsoft, often associated with their Outlook.com or Office 365 services.

Sign-Up Process

The series of steps a user follows to register for an account or service, typically requiring personal information and agreement to terms of service.

Cloud Storage

An online service model where data is stored on multiple virtual servers, generally hosted by third parties, allowing for the access and management of data over the internet.

Outlook.com

A free web-based email service provided by Microsoft.