As the Wage Rate Decreases,the Amount of Time Spent on Market

question 38

Multiple Choice

As the wage rate decreases,the amount of time spent on market work _____

• A)increases if the income effect dominates the substitution effect.
• B)increases because of the substitution effect.
• C)decreases because of the income effect.
• D)decreases if the income effect dominates the substitution effect.
• E)decreases if the substitution effect dominates the income effect.

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Definitions:

Biological Forces

Natural and inherent influences on an organism's development and behavior.

Psychological Forces

Internal or external factors that influence the mental states and behavior of an individual, such as motivations, perceptions, emotions, and personality traits.

Social-Cultural Forces

Influences that shape individuals and societies through cultural norms, values, traditions, and social structures.

Predictability And Unpredictability

Concerns the extent to which future events are perceived as being certain or uncertain, affecting behavior and decision-making.