Roxanne's hourly wage increases from $9 to $13 . Which of the following describes a consequence of the increase in Roxanne's wage?
a. The opportunity cost of Roxanne's leisure time has increased.
b. Roxanne may choose to work fewer hours due to the increase in her wage.
c. If Roxanne's labor supply curve is upward sloping, she will choose to work fewer hours.
d. Both a and b are correct.
d
You might also like to view...
Which of the following statements differentiates between a shortage and a surplus?
A) A shortage occurs when price is held at the equilibrium price, but a surplus occurs when price is held above the equilibrium price. B) A shortage occurs when price is held below the equilibrium price, but a surplus occurs when price is held at the equilibrium price. C) A shortage occurs when quantity supplied exceeds quantity demanded, whereas a surplus occurs when quantity demanded exceeds quantity supplied. D) A shortage occurs when quantity demanded exceeds quantity supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.
Most statistical studies on the relationship between real interest rates and saving conclude that higher real interest rates
a. increase saving. b. tend to decrease saving. c. tend to decrease both consumption and saving. d. have no effect on saving.