The shortened work week coupled with rising hourly wages in the U.S.economy shows that
A)the income effect has been dominant.
B)the substitution effect does not exist at all.
C)the U.S.worker is no longer productive.
D)workers have become increasingly lazy.

Question

Quizplus · Accepted Answer

The shortened work week and rising hourly wages suggest that workers are choosing to work less in order to maintain their income level, indicating that the income effect is dominant. This does not indicate that the substitution effect does not exist, nor does it suggest that workers have become lazy or unproductive.

The Shortened Work Week Coupled with Rising Hourly Wages in the U.S.economy