Use the Following to Answer Questions

question 236

Multiple Choice

Use the following to answer questions:
Figure: Income and Leisure Opportunities
-(Figure: Income and Leisure Opportunities) The figure Income and Leisure Opportunities refers to Keisha when she has 100 hours per week for working or leisure. There are two time allocation lines, one for a $10 hourly wage rate and one for a $20 hourly wage rate. Keisha's optimal choice is point A when the wage is $10, and her optimal choice is point C when the wage is $20. As the amount she earns increases from $10 per hour to $20 per hour, Keisha will work _____ hours because of the income effect.

• A) 10 fewer
• B) 15 more
• C) 25 fewer
• D) 50 more

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Definitions:

Equity Theory

A theory that suggests that employees are motivated by fairness in the workplace and will adjust their input level to match their perception of fair treatment.

Job Inputs

The resources, effort, and time an employee contributes to their work tasks.

Job Outcomes

The results or end-products of one's work, including achievements, performance levels, and contribution to organizational goals.

Direct Experience

Knowledge or skills gained through first-hand involvement or activity, as opposed to information learned through others.