Multiple Choice
Our income-leisure model suggests that a worker works overtime because:
A) If he is paid the straight-time equivalent, he will work more hours than over-time hours.
B) He earns over-time premium, which leads to a greater income effect than substitution effect.
C) He is underemployed.
D) He is overemployed.
Correct Answer:

Verified
Correct Answer:
Verified
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