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:

M'Naghten Standard

A legal standard used to determine if a defendant was insane at the time of committing a crime, focusing on the ability to understand right from wrong.

Actus Reus

In Canadian criminal law, the prohibited physical act that, together with the mens rea, defines a criminal offence.

Mens Rea

In Canadian criminal law, the guilty mind or bad intent that, together with the actus reus, defines a criminal offence.