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Figure: Leisure 2 Refer to the Figure

Question 5

Multiple Choice

Figure: Leisure 2 Figure: Leisure 2   Refer to the figure. According to this diagram, which statement is FALSE? A)  At 13 hours of leisure and an income of $45.19, the worker earns a wage of $4.17 an hour. B)  The labor supply curve is downward sloping. C)  The substitution effect dominates the income effect. D)  This worker chooses to work more hours if paid higher wages. Refer to the figure. According to this diagram, which statement is FALSE?


A) At 13 hours of leisure and an income of $45.19, the worker earns a wage of $4.17 an hour.
B) The labor supply curve is downward sloping.
C) The substitution effect dominates the income effect.
D) This worker chooses to work more hours if paid higher wages.

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