Suppose That Barry's Wage Increases and He Responds by Working

question 130

Multiple Choice

Suppose that Barry's wage increases and he responds by working more hours. Which statement must be TRUE?

• A) Leisure became more expensive, so Barry consumed less of it.
• B) The substitution effect of the wage increase caused Barry to substitute leisure for work.
• C) The income effect of the wage increase dominated the substitution effect of the wage increase.
• D) The substitution effect increased hours of work and the income effect increased hours of work.

---

Definitions:

Big Five

A model of personality that outlines five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Self-concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's abilities, values, and identity.

Extraversion

A personality trait typified by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

Irrational Opinions

Irrational opinions are beliefs or judgments that are not based on reason or logical thinking but on emotions or flawed reasoning.