The idea that a person or business is most likely to work hard when doing so brings the greatest return is called:
A) intertemporal substitution.
B) irreversible investment.
C) labor adjustment cost.
D) time bunching.

Question

Quizplus · Accepted Answer

The concept of intertemporal substitution suggests that individuals or businesses are likely to work harder when there is a greater payoff for doing so in the future. This means that people will allocate their time and effort based on the potential rewards they can receive at different points in time. Therefore, intertemporal substitution is the best choice out of the four options given.

The Idea That a Person or Business Is Most Likely