Fiona's hourly wage decreases from $10 to $8. Which of the following describes a consequence of the decrease in Fiona's wage?
A)The opportunity cost of Fiona's leisure time has increased.
B)Fiona may choose to work more hours due to the decrease in her wage.
C)Fiona may choose to work fewer hours due to the decrease in her wage.
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

When Fiona's wage decreases, she might work more hours to maintain her income level (B), or she might work fewer hours if the lower wage makes work less attractive compared to leisure (C). Both scenarios are possible.

Fiona's Hourly Wage Decreases from $10 to $8