The Substitution Effect of a Change in the Wage Rate

question 197

Multiple Choice

The substitution effect of a change in the wage rate refers to _____

• A)substituting leisure for work as the wage rate rises.
• B)substituting market work for nonmarket work as the wage rate falls.
• C)working more hours as the wage rate falls.
• D)working fewer hours as the wage rate rises.
• E)substituting market work for leisure or nonmarket work as the wage rate rises.

---

Definitions:

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people either within or outside the organization.

Job Enlargement

A human resource strategy where additional tasks of similar skill level are added to a worker's responsibilities to increase job diversity and employee motivation.

Job Enrichment

Enhancing a job by adding tasks that increase responsibility, autonomy, and opportunities to grow, improving employee satisfaction and performance.

Psychological State

The mental condition of an individual at a particular time, influenced by emotions, thoughts, and behavior patterns.