An Increase in the Wage Rate Will Increase Desired Hours

question 26

Multiple Choice

An increase in the wage rate will increase desired hours of work if:

• A)the income effect and substitution effect cancel one another
• B)the income effect dominates the substitution effect
• C)the substitution effect dominates the income effect
• D)accompanied by an increase in nonwage income

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Definitions:

Contextual Therapies

Psychotherapies that emphasize understanding individuals within their social, familial, and cultural contexts.

Counterconditioning

A behavior therapy technique where a maladaptive response to a stimulus is replaced with a more adaptive one, often used in treating phobias.

Behavior Modification

The use of learning techniques, such as reinforcement or punishment, to change or modify behavior.

Reciprocal Inhibition

A psychological principle where the existence of one emotional or behavioral state can suppress the occurrence of another, such as anxiety being reduced by relaxation.