Lisa Works 46 Hours a Week at $10 an Hour

question 40

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 labour has decreased.

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Definitions:

Critical Thinking

The process of objectively analyzing and evaluating an issue or situation to form a judgment.

Self-Regulation

The ability to monitor and control our own behavior, emotions, or thoughts, altering them in accordance with the demands of the situation.

Neuropathy

A condition affecting the nerves, leading to weakness, pain, and numbness, particularly in the hands and feet; can have various causes including diabetes and vitamin deficiencies.

Gabapentin

A medication primarily used to treat seizures and neuropathic pain.