Newspaper accounts of the U.S.labor market often point out that many people are working more hours than their parents did.What might explain this phenomenon?
A) the substitution effect
B) the endowment effect
C) bounded rationality
D) the income effect

Question

Quizplus · Accepted Answer

The substitution effect explains that as wages increase, the opportunity cost of leisure increases, leading individuals to work more hours to maximize their income.

Newspaper Accounts of the U