When a worker experiences an increase in his hourly wage rate, the income effect will lead him to seek fewer hours of employment.

Name: When a worker experiences an increase in his hourly wage rate, the income effect will lead him to seek fewer hours of employment.
Brand: Quizplus
Rating: 4.9 (60 reviews)

Question

Quizplus · Accepted Answer

The income effect suggests that as a worker's wage increases, they may choose to work fewer hours because they can maintain the same standard of living with less work, enjoying more leisure time instead.

When a Worker Experiences an Increase in His Hourly Wage