When the wage rate rises,a worker is better off and thus chooses to have more leisure and more consumption.This phenomenon is known as

Question

Quizplus · Accepted Answer

The phenomenon described in the question is the income effect, where an increase in wages leads to an increase in the worker's disposable income, allowing them to consume more while also having more leisure time. Choices A, C, and D refer to different economic concepts that are not relevant to the question.

When the Wage Rate Rises,a Worker Is Better Off and Thus