Lisa Works 46 Hours a Week at $10 an Hour

question 201

Multiple Choice

Lisa works 46 hours a week at $10 an hour.If her wage increases to $16.50:

• A)the substitution effect implies that she will work less.
• B)if leisure is a normal good,the income effect implies that she will work less.
• C)if leisure is a normal good,the income effect will reinforce the substitution effect and she will work less.
• D)Lisa's marginal product of labor has decreased.

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Concise

Expressing or covering much in few words; brief in form but comprehensive in scope.

Manipulation

involves influencing or controlling someone or something to one's advantage, often without their knowledge or consent.

Truthfulness

The quality of being honest, accurate, and straightforward in communication or behavior; paramount in building trust and credibility.

Honesty

The quality of being truthful, transparent, and free from deceit or falsehood.