Which of the Following Statements Is (Are)true

question 306

Multiple Choice

Which of the following statements is (are) true?
I.As the real wage rate increases,the household's income decreases,which influences people to work more hours.
Ii.As the real wage rate increases,the quantity of labor demanded increases.
Iii.As the real wage rate increases,the opportunity cost of not working increases.

• A)i only
• B)ii only
• C)iii only
• D)i and iii
• E)i,ii,and iii

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Definitions:

Normal Good

A good for which demand increases when consumer income rises, showing a positive relationship between income and demand.

Income Rises

An increase in the amount of money or value earned or received by an individual, business, or country over a certain period.

Leisure

A period of free time not taken up by work, domestic responsibilities, or other obligatory tasks, often used for rest, recreation, or cultural activities.

Substitution Effect

The change in demand for a good or service caused by a change in its price, making consumers substitute it with another good or service.