For a Worker Who Is Deciding How Many Hours of Labour

Multiple Choice

For a worker who is deciding how many hours of labour to supply, all of the following are true except that:

A) The marginal rate of substitution between income and leisure is equal to the wage rate.
B) The income effect of a wage change equals the substitution effect.
C) The rate at which she is willing to exchange leisure for income equals the rate at which the market allows her to do it.
D) The worker cannot increase total utility by working more or fewer hours.
E) The slope of the budget line equals the slope of the indifference curve.