Barry's Wage Increased and He Responded by Working More Hours

question 124

Multiple Choice

Barry's wage increased and he responded by working more hours. Which statement must be TRUE?

• A) Leisure is an inferior good.
• B) The substitution effect of the wage increase dominated the income effect.
• C) The income effect of the wage increase dominated the substitution effect.
• D) The substitution and income effect both increased hours of work.

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Definitions:

Hyperthyroidism

A condition caused by excessive secretion of the thyroid glands.

Irritability

A state of increased sensitivity or annoyance, typically as a reaction to external stimuli or personal stress.

Low Blood Pressure

A condition where blood pressure is lower than normal, potentially causing symptoms like dizziness or fainting.

Hypothyroidism

A condition caused by a marked deficiency of thyroid secretion.